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Nem said:
Wright said:

 

That'd imply you can simply reload last checkpoint (like in most games' Game Over screen nowadays) and just try again. Where would be the punish there?

Progress lost?

Isn't "You now have to redo it all over, you just wasted your time" a bit overkill?

I have to agree with Wright on this. Good and bad endings only add replayability to a game or/and series. Especially if a game starts to arc earlier in different directions. ME series is a good example of this and why it's a good thing.