How are death and saving handled?
There are no save points. You never need to save your game; it saves your character automatically when you leave it. If you die during a main mission, you can restart it. If you die during a sub-quest, you failed. This makes dying more dramatic. We don't want it to be inconsequential.

Does Restricted Area feature randomly generated dungeons?
Yes. There are unlimited submissions with entirely generated levels as well as handcrafted main missions (with scripted events).