Or at least what we now call Hardcore mode.
Mike Monard says in this post:
There were a couple of times where a wandering monster got surprise and achieved a TPK before the players could even react, and every time the referee said "Well that's not fun so it didn't happen."
Individual characters suffering bad luck happened all the time.
So bad luck to individual PCs? Fine.
Bad luck wipes out the group in a no-fun fashion? Restore from save, try again.
Interestingly, we played this way sometimes when we were younger, but as I got older I learned this was bad, bad, bad and I was "supposed" to have the TPK and have everyone start back up with new guys if they wanted to. Saying it didn't happen? Nah, bad idea. Except that apparently the Lake Geneva crew did that sometimes.
Thanks to Talysman for mentioning it, or I'd have missed the whole thread.