Most people who play classic though reset when a unit dies.
Yeah. That just defeats the purpose of Permanent Death. You might as well play on Casual.
If you think this way about not resetting the chapter, then doesn't that technically mean you would have to restart THE ENTIRE GAME if Chrom or the Avatar dies? I know it actually only restarts the chapter when this happens, but in your way of thinking, you would agree that losing Avatar or Chrom should make you restart the game?