For 1.16.4/5

Ability to take away health when player dies

• Promotes not dying even more/great difficulty balancing with health increasing allowed, also makes the 'lowest health a player can have' option do something lol

Apologizes if this is already a thing, but I don't think so or I'm really blind

it is a thing

should be added!

This is indeed possible, there is the player.health.setOnDeath config which takes in an EvalEx expression. You can set it to "maxHealth - 2" for example and it will reduce your max hp by 2 each time you die. Other questions about this should go on curse or preferable on discord