I'm at that stage in game development where I just haven't put in damage to the player.
It just gets in the way of play testing. It's fairly rudimentry to add.
But - it's like your just imagining how it'd be like if you could actually take damage/die/lose in game. It's this hazy notion of what'd be like to play the game - which will indeed have nothing to really do with the game. It's kind of like drawing a big wafty cloud, but in the end play with be a hard square somewhere inside of it.
Actually, 'Death Contact' would be a good name for a game.