Gold Loss on death is a ridiculous concept for this game. For one, it would create a meta where only , and I mean ONLY gank junglers are used, so that the jungler can camp top or mid and stay and help get kills or push the enemy out of lane. Either way, they lost gold, and they will be behind. Not only is that not fun to play against, it's toxic because there is no counterplay to it outside of calling your jungler for help.
Another reason is that it would encourage hypersafe play. Games would become BORING. There would be no reason to risk going for a kill down in bot lane because anything can go wrong during a fight, and one of two things will happen. You'll either win, and you'll get gold while denying them gold and taking it away from them too, OR you die and now your lane is unwinable because they suddenly not only killed you and took a gold lead from the kills, but they also got the next one to one and a half minion waves, so they are that much ahead, AND you lost gold. You are at a Gold Deficit! How are you even going to stop them from all-inning you ever again? The Jungler's up there in mid or top, making sure they don't do anything. Lanes will literally become determined by who gets the first kill or wins the first fight. That's not a risk worth taking in my opinion. I would rather sit back and farm, since it gives Gold anyway...