My apologies for [probably] repeating what may have been said above and [probably] taking the debate back to a point it already got past, also putting forward an excuse of being on the run (as is my usual state of affairs of late
) let me address the initial post and forward the following brief statement:
Death is not punishment
Or, at least, whilst being partially a 'punishment' from certain point of view, it is at the same time a way of release. It was not 'designed' to be percieved solely as punishment and the fact it is nevertheless perceived so is one of the many consequences of Melkor's meddling with the World's affairs
I'm almost sure that were it not Frodo Gandalf discussed the matter with back than in Bag End but one of the Wise the question of 'death as punishment' would not have been raised at all