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Woah, only one wound?  Can they still die or is it just a stat penalty?  If they die at just one wound I feel like that might change the game quite a bit...

Yup, they still die, if they die with 1 wound on them, they die permanently.   It does make the game feel a lot different.  Its harder to make your deck of favorite followers, because they keep getting wounded, and then you have to sit them out.

I still like it a lot.   The beta version is funner, and meaner.