You could rework it, but I think die-and-reset is totally fine on its own. For me it's that the Stress and Panic mechanics make less sense in combination with that.
However, maybe the answer is that when you do reset after dying or witnessing a death, it's like waking from a nightmare. And you're not sure if you're actually in a time loop, just imagining things, or having prophetic visions of impending doom. So then the resets are actually provoking Stress and Panic, and become much more Mothershippy.