So right now I'm going through the Dungeon of Death. I finished an encounter that left half my party eradicated. Fortunately my priest was still alive to resurrect everyone.

This left me wondering: is it really that easy? No stat or experience penalties? Are the only drawbacks to death really just having to pay for the resurrection and broken armour?

If they're left dead for too long (I don't know how long exactly), a character cannot be resurrected. But this is hardly ever an issue because temples are very accessible.

In VII, death bears the risk of zombification. If a character is resurrected using Raise Dead or at a Dark Temple, they will become a zombie which constantly lose health an spell points over time.

Eradicated characters also get 5 years older.

... Permanently?

In MM3, almost-permanently - there was a way to remove unnatural aging, but it was quite difficult and only accessible late in the game (so close to the end that it made little difference). I don't know if it is the same with MM4, I didn't get that far in it (yet).

In MM1 and MM2, bringing a character back from eradication left them with -1 to their endurance permamently... UNLESS you went to a temple to get the healing done.

I do not remember if this penalty is still in place in the Xeen games. Perhaps check the manual?

There's a cure for unnatural aging both in MM4 and MM5.

What I meant was whether or not the cure for unnatural aging covered aging caused by eradication.

I'm almost done World of Xeen anyway, so I guess my characters' age isn't that big of a deal anyway.

Only aging because of time passing is natural aging.