I would go for the simplified model that was harder to kill, but not impossible, that was also movable by other players, including to cryopods. I also like the idea of a cryo/bed system where if you log off there, you wake up there with all of your inventory intact. If you log out in an area without facilities, there might be some sort of damage/exhaustion mechanism that you can overcome in-game, like a deterioration of movement rate down to something as extreme as 80% normal.
Are we assuming the avatars have something like transmittable cortical stacks? If you die, you go to a clone. You can move from place to place, via clones, though not with your inventory.