Indeed - that's one of the things I like in ED. Peter Molyneux held a talk at a GDC over a decade(?) back, basically stating that players don't like to lose and apparently, lots of developers made that their credo.
Yea, well, but since then we all learned Mr. Molyneux is full of pudu... so to speak.
Loosing is part of playing a game, and removing it devalues the whole experience (that also includes loss without meaning)... I mean, using cheat codes to play though a story just to see it once is nice, but it's not what most games are about.
While I don't quite get why everything these days has to be labeled (ladder anxiety!?), I think the direction ED is taking in terms of risk/reward is a very good one. Just like Dark Souls and other "hardcore" games, it provides risk of "real" loss (ie. the loss of time invested), while giving players the option to choose their own challenges.
On the "burn out" part... I can see that, especially when taking into account the fact that everything we can achieve in the game right now is only temporary, but, then again, only players themselves can decide how much they play... we should stop trying to take away the responsibility players have for their own enjoyment of a game... in the end, only you can say how much is too much, no?