Rare were planning to add a death tax in Sea of Thieves but it wasn't well received by players. The idea was to charge players for dying to sharks and skeletons, but not for PvP and the penalty size depended on how avoidable the death was.
While it sounded like a well designed money sink with roots in immersion, people generally don't like giving their money away just like that. This is especially the case when the game in question doesn't have rewards that would incentivise players enough to keep grinding. Sea of Thieves is basically just a grind for cosmetics as it is and it appears the players don't want it to be slowed to a crawl, if it isn't already.
Captain of the Ferry of the Damned's death fee wasn't already implemented into the game and Rare were probably testing the waters with the announcement, in order to see how the player base will react. How the players reacted is evident by Rare's decision not to go through with the change.
Letting everyone know we've heard the feedback and the proposed 'Death Cost' in #SeaOfThieves is, well, dead. We messed up with the messaging around this, and it's now gone. Thanks for the honest feedback & discussion on this. https://t.co/83pYg5HPbq— Joe “Three Sheets” Neate (@JoeNeate1) March 26, 2018
Respawning also needs to be redone in PvP as players can just respawn and resupply their ship not far from where it was destroyed and re-engage the opposing pirates. Then the ones with the damaged ship get sunk, respawn at a nearby port and re-engage. This circular PvP combat can continue almost indefinitely, without a system in place to prevent it from happening.
Joe Neate has also added that Rare are working on ''the top service issues to ensure everyone can play'' , referring to the connectivity and server overload issues the game is currently having. As Neate stated, this is Rare's top priority and they will be working on other feedback points afterwards.