Exactly, if they die, even if other players kill them (accidentally or intentionally), that player who had character died (meaning yourself) has to adhere to the Honour system and admit permadeath... (bcuz on Hardcore server, u could also suffer death due to other players kill u accidentally or intentionally)
(dunno what happens on permadeath on regular servers tho...do people just Delete their character? or Transfer to another server? or just use them as bank mules... )
Generally we delete, but all permadeath guilds are slightly different, and unless it is a spoken objective players dont kill other players in some guilds as that will get you banned from guild. It really isnt that hard to kill other players in this game, you just have to be ridiculously reckless and cunning.
If you are coming to a permadeath guild and you behaviour is reckless and risky to other players it is likely you will receive the same treatment you will receive on hardcore and build the same reputation.
My last permadeath loss of a toon was when i tried to rescue a fellow guildie who had foolishly decided to put the entire geoup at risk by agroing stonejaw, one of the group was instantly killed, i was perfectly safe as i had kept my distance until the person who aggroed stone jaw was getting killed and then i intervened with my high dps drew aggro and was eventually killed(i should have left them to die and learned that with that player my future behaviour would be to let then die when they were as foolish as that again). None the less, that player showed little remorse or care that others had lost time invested toons and even hinted at how humorous it was. In permadeath guilds people can and will build a reputation whether it be one of being bad to group with or being one of being a good team player, pick your poison and lie in the bed you make.