If the intent of this is to make the game a little easier for newer players, only works on Alpha 1&2 islands and only from PvE deaths, then I think a limited "lives" system could be a good idea.
I would suggest a 2 or 3 step system as follows:
2 Step: 1st death = 33% loss of modules & cargo, 2nd death = 66% loss, 3rd death is total death(robot/cargo/mods)
3 Step: 1st death =25%, 2nd = 50%, 3rd = 75%, 4th = done
Upon dying you revive back at the closest terminal with what remains of your bot/mods/cargo. The bot is flagged as needing repairs and cannot have mods or cargo removed from it till the repairs are done. To repair the bots I would then add the player made repair kits as someone else mentioned. These should be robot size specific & tiered to match the death percentages above. So if I'm driving a Bapho and die once I'll need to buy an assault tier 1 repair kit, which should cost roughly 33% of an assault if using the 2 step system above or 25% if 3 step.
Note: I would specifically make mission cargo immune to the % losses above, though the player would still have to repair the bot to retrieve the cargo and continue with the mission. Also if the above were implemented I'd remove player loot from dropping when killed by a npc. With the new system the Syndicate is already hauling back your remains when you die so there is nothing for a player to go back out and loot themselves and the final tier of death should be complete loss since you now have 2-3 lives. Final bot death would mean an automatic mission fail if any type of cargo hauling was required since the cargo would be destroyed with everything else on the last death.
The biggest reason I think this may be needed to help newer players is the proposed npc rework. With Alpha 2s having only red mobs soon, they are going to be much harder for players to live on comparatively. Industrial players of all types are going to be hit hardest by this. All noncombat missions will suddenly have potential combat requiring dodging reds now. Mining and harvesting will suddenly have risks where there currently are none. I started playing years ago when roaming red caravans & Observers required careful monitoring of your surroundings and running like hell from your mining op from time to time hoping the bots would pass quickly enough to get back to your can before it imploded. I did it before and I'll do it again, no biggy for me or for the game's vets.
I understand the players that say it will cut into bot sales, but quite frankly we need to retain players. You're still not going to sell any extra Kains compared to now if players are not staying and continuing to grind. A slight loss on units sold per person should be more than made up for by having more players stay in game and buying bots in the first place.
Though not specifically part of this thread's topic, some of the other ideas posted here like the production changes are good too. I'm eager to see what the Devs do with Zoom's mention of configurable stat manufacturing and loot drop changes.