We currently have a five second respawn time. Even on a complete arcade game like Team Fortress 2, which is about 10.000 times faster than dayz, you have longer respawn times.
In the discussion about Shortboy's 24h ban yesterday I believe someone said something along the lines of: it was combat logging when he logged off for dinner because he must have known that they would run back up there. And that was already the third time or so! (yes, yes, the fact that Nilus was there stalking him without him knowing is another topic). I think that clearly shows what's wrong with this mechanic...
Most serious PvP encounters end in the 'prevailing' party not being able to clear the area because killed players keep running up in scattered waves just to save what there is to save or at least take some more people down with them or wreak a little bit of havoc. This is not only highly unrealistic, but it also takes away the incentive to stay alive, so almost every bigger fight that is fun at first turns into a moronic deathmatch after a while, often with little more than AKs and hatchets by the end of it (and awkward unarmed people with nothing to lose sprinting around as bait or whatever). Some people spend so much time on the server, that they could basically keep this circus up 24/7, but is that the kind of DayZ we want to play?
Don't get me wrong, I am not complaining because other people do it, me and my different squadmates have done it too, and it always bothered me, whether it was us or others - it's tiring and has no place in a survival game, at least not without some form of regulation.
On the vast majority of Altis Life servers you aren't even allowed to enter the area where you got killed in a firefight for half an hour or so, otherwise you get banned. (There are a couple of other common "New Life Rules", but I don't think they are all that relevant for DayZ.)
I like the intention of that idea, but the rule as such lacks common sense (it doesn't make sense to forbid players to go to a certain place on the map) and is hard to actually apply. So what I suggest is

- much longer respawn times (i'm talking 5 to 10 minutes), which give you time to accept what happened, grab another coffee or a beer, and then come back and see what your options are, back to base, gear up a little around the coast, or try to link up with your squadmates again. I do realise that a lot of people will find this annoying, but gentlemen (and ladies?), this is a survival game. Dying should be annoying and not a free teleport to all the industrial loot at the coast. If you don't want to deal with the nuisance that is death, then don't die. The best way not to die is to kill all the people that want to kill you. So get good or lucky at that and you'll have a good chance of staying alive. If a zone is too hot and you realise you have no control over your surroundings, it may be wise to pull out, get a better grasp on the situation and try another approach. That's how combat works.

- not being allowed to spawn in the same location twice within one server cycle, or even get rid of spawn selection completely. Or maybe there is a way to block spawn locations that are closest to where you last died, so that you have to try different things if you die more often?