Hasn't stopped people from enjoying EVE Online (despite all the other mundane aspects of it) or Ultima back in the day. Sure, it's going to turn off a lot of players who have grown accustomed to WoW style MMOs where you're never in danger of losing anything but a few minutes of time to death. For others, the excitement and intensity that those conditions create is the draw.
I haven't heard of many (any?) in-game hacking incidents in Eve. Plenty of social engineering incidents but that's become part of the game.