The death effect is cool, but as it stands now I might as well minimize the game while I'm dead. I can't look at my abilities, I can't look at what items are available, I can't look at enemy health while I'm dead (or allies). All I can do is chat and try to watch the action through the dimmness of the death haze (which makes watching the fighting not very enjoyable).
My suggestion would be to at the least let a player adjust their skills while dead. Ideally let them look at items while dead as well so they can try to plan what to buy. As it is there is not any time where a player can just sit and read tooltips and since there is no online database of items yet (that I know of) this can really hurt the learning curve of the game for new players. The one time when you would be able to look at skills and items in peace (when dead) the game shuts both of those things out.