Actually, the jerks care very much for their characters, at least for their characters' xp and skills. Those are the things that allow them to be jerks and pick on the characters who lack the xp and skills. At least, that's who I think are jerks. A system that retains the skills and xp accomodates the jerks, and hurts (or helps?) the hardcore roleplayers.
Putting in permadeath for eliminating jerks allows the players to decide who they don't want and police themselves, instead of the administration deciding for them. So it depends on how much control you want over your playerbase.
This is really an interesting discussion, because permadeath can affect so many aspects of the game.
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