I'm not sure that having everyone respawn in Hydlaa is the thing to do, some new players might never explore the areas outside Hydlaa if they had everything they need for their character close at hand, plus respawned there too. What is reasonable though, is to have all the races respawn at Oja until the other cities have been put into play for the other races.
One of the benefits to having all the races respawn in Oja is that /die becomes a less desireable option when the going gets a little rough in game. For example, if it's hard to find your way out of the temple after mining a full load of ore, /die can land you right smack in Hydlaa if you're anything other than enki.. right where you might want to be if you have a full load of ore.
My character is enki, and yes, it's a minor (as opposed to major) hassle to have to respawn in Oja. Had I known about BEFORE character creation (it's not mentioned in the guide or throughout the character creation process) perhaps I'd have chosen a different race. Or perhaps not. I have the character I started with.. for better or for worse, so to speak. To say "just create a new character" doesn't really take into account that I (and others) already have a fairly established character with ties to other charcacters in the game. It would be poor role playing, indeed, to let the fact of an inconvenient respawn spot affect my decision as to whether or not I kill my charrie off.