It's called an example, but regardless, I'm not for 100% item destruction upon death. Never have been. It doesn't need to be a large amount per person. The important thing is that it's the same regardless of whether you die in PvE or PvP. Chances are if you are killed in PvP then the person that killed you is going to loot your corpse. They're still going to get a prize. If you die in PvE and someone loots your corpse then they'll get a nice little exploration trophy, but if you get it then you're going to be a bit behind--it's a good reminder to try not to die next time.
Wait... I think I see what you keep doing with my posts. You seem to be assuming that if you die in PvE that you WILL get your stuff back and if you die in PvP you won't get anything back. That's not the case because it relies on variables that can't be controlled. A PvPer very well might just leave your items on the corpse or some random person might come along and loot you before you get back even if you die because of racoon. You cannot count on all PvE deaths having the result of being able to go back to your corpse. Nor can you count on people always taking your stuff after they kill you in PvP.
What I'm saying is that BEFORE a thinking person makes the decision to loot you or not, that some items get destroyed.