So whenever I die in Neverwinter I always reload a quicksave and have never re-spawn, so that mechanic is something I have never tried, but is it more fun/interesting to not use quicksaves when you die?

No. It's completely up to you, whichever you prefer. I've seen community-created campaigns that use the death and respawn mechanics in more interesting ways, so that you would miss out on some things by reloading instead of going along with it, but in the official campaigns it hardly makes a difference. You might even get punished by losing gold and XP when you respawn? I don't quite remember how NWN handles it. But if that's the case, I see nothing fun or interesting in being set back and losing progress. I never respawn either unless a community module explicitly tells me that I should. It just doesn't feel right to me, but that's a matter of personal taste.

Ok, It was because I read a comment about how the respawn mechanic was very cool in some other module (can't remember which one) that had me worried that I might had missed something in the main campaigns.

You are doing the right thing. The "Spawn" mechanic is just an other poor attempt from Bioware trying to mimic Diablo 2's success, just like random loot, lots of loot, size based inventory (which I believe was the worse and never used again).

No way, I love the inventory system. It's fun organizing every bag page.

I'm the same. :D I much prefer the wonderful pixel art of all sizes in NWN's inventory system to NWN2 where everything in the inventory looks the same, just a tiny little square like the scrolls in NWN.

But I can definitely see why the inventory tetris would annoy other players. And when the inventory is close to full, it can get pretty annoying to me as well, but that's more to do with limiting the inventory space in the first place (and it has nothing to do with realism, but I suspect an unlimited inventory would come with the risk of slowing NWN down).

A lot of people do :) But it does take a lot of time and can get tedious after a while. And they ditched the inventory system altogether after that. Starting from KOTOR and onward(Dragon Age, Mass Effect), they used the Elder Scrolls way of handling the inventory. No physical limit, only number of items or weight limit, which reduced the time spent on the inventory screen greatly.

Yeah, you can definitely ruin a game with a bad inventory system. I liked some of what I played of Divinity Original Sin 2, but the constant loot dropping slowed the game down so much that I didn't enjoy the game anymore. Always needing to compare new gear wasn't fun at all.
I like how in NWN you rarely get any weapons or gear that is better then what you already have, cutting down on the time comparing if this sword is slightly better then that sword. Unlike how in OS2 you always had to compare not only if a weapon had a higher average base damage, but also elemental, and poison, and buffs, or de-buffs, and I don't know if maybe you looked cooler in plaid then in stripes. Plus you had 3 more companions you needed to do this for every time you got loot.

Haha. I never played OS2 (another game I bought but still haven't got the time to even install), but I played OS1 a little bit and I know what you mean. Me, being obsessed with maximizing the result did not help either. :)

I think its deliberate that you run out of strength before space as it would be pretty frustrating to have strength left but no place in your bag to put it. Also if your playing a character with low strength you can always equip items that give you bonus strength, when I got the belt of hill giants strength (and a few magic bags) I never really had any problem with picking up loot anymore. (later I also got the belt of frost giant strength)

I didn't complain about running out of strength, I just said that this fact makes sure the inventory system doesn't get too annoying. And as you say there are the magic bags (plus eventually some real bags of holding) and you can boost your strength. Although since my bard relies on dodge AC and finesse weapons, my priority naturally lies with Dex and Cha enhancing items. Besides I would never trade the permanent Freedom effect of the Belt of Agility for a mere strength bonus.

Still, being able to carry alot of stuff made the game flow a bit better. I wonder if tying the strength stat to your inventory is even a smart design chose to make. It's like a standard in rpg's, but perhaps it would be more interesting if it was tied to the gear you could equip but not to how much stuff you could pick up, to later sell on. It's mostly just annoying when I have to drop a bunch of +1 swords that I want to sell, just so that I can pick up something more valuable. Can't think of a time it created any fun or interesting scenarios. More of a minor annoyance really.

I remember the Dungeon Siege games offered a solution to this. You had a "mule" that followed you. Every character had their own inventory but you would carry the junk you want to sell on your mule. That was really fun and realistic.

I played an NWN module about a mountain expedition once that also gave you a pack mule like that. :)

To be honest, it happens to me quite often that I run out of inventory space in NWN, even with several magic bags in my possession, especially when the campaign is longer and high level. Your strength can so easily be boosted to insane stats that at some point it won't be enough to keep you from hoarding stuff during longer dungeon crawls without merchants at your disposal. One thing that might contribute to it though in inventory tetris is that some items take away a disproportionate amount of space. Take for example the huge beetle bellies which are usually not really worth anything, but occupy four whole quares per item. In most modules you wouldn't even bother to pick them up, but it's just an example. The same applies to many other things, e.g a module that takes place in a desert where you always have to carry a high number of water skins with you which get used up over time (annoying mechanic, I know, but I've played something like that), and the water skins are 4 squares each, as well. Books, too. If you want to keep them around for further reading later on, they quickly fill up your inventory. And so on.

What I personally see as the bigger problem though are the limited quickslots. Three times 10 might sound like more than enough for a fighter with few magic items, but a high level caster can't even fit all of their spells into the quickslots, and the radial is a pain to use for casting. I really hope Beamdog will come up with a way to add more quickslots in the future.