I’d say let us test it out more before increasing again. You know that many people didn’t like having it up to 10%. I don’t know how I feel about 2% yet.Sure though I imagine a percentage as high as 10% in player battles could significantly impact the overall simulation over time, given that the player fights in many battles. Not saying that's bad but something to take into account. I'll bring it up.
Maybe it’s best to suggest letting the player have some options and select player battle death rates. You could limit this to sandbox mode only and you wouldn’t have to worry so much about the balance. I’m of the opinion that sandbox mode should be much more customizable and campaign should be the balanced vision that you guys want.
I think this is the only way to make everyone happy