There's a line between "serious consequences" and "murder meatgrinder". I like the idea of there being a CYOA that lets players build a character with... well, character and that if you take risks there rewards but also actual consequences. And unless you are just going to eject players from the table who die during character creation, the only ones really are "rolling through that stuff again".
Might I perhaps bring up the Cubicle 7 edition of Warhammer Fantasy Roleplay.
Way back when, WHFRP 1st ed. by Games Workshop didn't have a system in which you might die during character creation, admittedly. But it had a system where you might well end up with a character who would die shortly after. It was beloved by many and everybody wanted to roll a Rat Catcher career because not only did you begin with the coveted Resistance (Disease) talent but there was a percentile chance you might begin with "a small but vicious dog" too.
Fast forward to Cubicle 7 getting the licence. They went back to much of the original edition inspiration but couldn't quite go
that Old School. What they came up with was a random system but where you get a modest XP reward at each stage for sticking with the random result. So roll your species. It'll probably be human and if you're happy with that, you get +20XP to start. If you're not, well you can pick but no bonus. Now you roll your class and career. Maybe you end up a Beggar. Take the random result and you get +50XP! Or maybe you really don't like that, well okay, your bonus XP is reduced to +25XP but you get two extra rolls and now can pick from any of the three. If you really ain't going with the results, then you can pick a starting career but you get nothing extra.
The whole principle continues throughout - like you can take the skills as rolled, you can take the less random roll but assign how you wish or you can take the fixed points deal for nothing.
I find this a pleasant mix of Old School Traveller randomness without it being a total killjoy. The XP amounts are not game-breaking, nor are they an all or nothing. Perhaps you just really don't want to be a Nun, for example.
It also leads to a lot of creativity which is the real bonus. It's not about being hard core enough to accept dying during chargen. It's the fact that you didn't anticipate playing a Dwarven Barber, but now that you've rolled it, you love the idea. Thus is born Sweeny Toddson, Dwarven Barber of Flood Street.