Quote: Arc of Archives
From a gameplay perspective, it would be punishing and frustrating for players that aren't interested in the story and just enjoy the gameplay, it would make people lose their favourites, and from a story perspective it doesn't even make complete sense because the Skylanders are supposed to be frozen on Earth. Now how that affects their mortality is a mystery, but since they're supposed to have a tangiable form in real life, I don't think the plot of the main games should affect their usability.
Well, IF it did happen, they could just have the figure stop working as its 'soul' is no longer around. Or they could just repeat what was done with Eon and shove that soul in the limbo between portals, and that way you don't need to explain why they didn't turn Undead.
But you have the reasoning as to why that should never happen on point. Waaay too many people in these forums don't give a crap about the story and lore and will clearly only joke and make up stuff in topics about it despite clearly not paying attention to anything from it. Forcing them to look at that sad and punishing them for not seeing it coming will just push them away even more.