Yes, death is interesting. Basically a fea can never be destroyed -- when the hroa dies, the fea either hangs around to reform its hroa (Ainur), goes to Mandos (Elves, Dwarves (?)) or goes to Illuvatar as in the case of Men.
This is the basic principle. When the hroa is destroyed, the fea stays (leaves, but whichever way is not destroyed along with the hroa). The various races, I believe, represent the various possible forms of being; therefore the things their spirits end up doing represent all possible fearin eventualities that can exist.
Ahem. Something like that anyway =].
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