Firky wrote...
Was there one battle in origins where that retreat thing happened and you got thrown back in a cell? Was it in some mansion near the end? I can't remember.
Yeah, that was where you're rescuing Anora and Ser Cauthrien stops you. Surrender or lose the fight and you wake up in a cell and get a cool sidequest.

The battle itself is horrendously skewed, however, with Cauthrien
much more difficult to defeat than she is later in the game (should you fighter her again).
I think that would work for encounters here and there, totally. But there are a lot of battles in these games. And, lots of places where retreat doesn't really work.
And as noted, so many battles can be dubbed as filler material it'd be impractical to have the story reflect it if you failed each one.
Heck, it'd also be impractical if you repeatedly managed to run away and never got killed.

Death should still happen
sometimes, but better and more creatively than it tends to be now.