I'm hugely in favor of the Sovereign dies = game over idea. It's very thematic, it makes me the Sovereign, and I don't have to worry about strange questions like why I can pass my worldshakingly mighty and rare powers which are part of my being to some schmuck of a great great grandson whose most impressive quality was previously being married to a rich merchant's daughter or something. As you might guess, I am not the biggest fan of the "descendent = successor" business.
I mean, maybe that can work in the sense that it's game over for you, but your descendents rule little AI splinter kingdoms sans-Sovereignpower, but not as a game-continuing mechanic.
So, how to avoid death?
Hide is a cool option, actually. I don't see it as a mechanic forced in to get around death. It seems to me more like an option to transition between a MoM style of play and an Age of Wonders style, which I like.
Relying on Evade as a primary mode of death-avoidance, though, is a disaster waiting to happen.
Reading through this thread, I saw a lot of good ideas. They can easily be combined.
The Sovereign is a powerful being, almost a force of nature. Even on his luckiest day, Jerry the Serf shouldn't be able to end a Sovereign. Sovereigns should be game-over killed only by high-end spells, powerfully enchanted end-game weapons, and megabeasts like dragons. However, if anything else defeats them in battle, they should be wounded or possibly discorporated in a Sauron-esque manner. Wounds need to be healed, a discorporation would require even more time and also probably mana to come back from. Wound drawbacks probably seem obvious, but discorporations would be even more serious. No siring additional descendents, your ability to research might be impacted (it'd have to be conducted through proxies), and maybe even costs of all magical activities are raises because it'd harder to focus those things when you're also worried about maintaining the integrity of your spirit. That's just me spitballing, though.
However, here's where the evade stuff comes in. Evade can govern whether or not you escape unharmed rather than are wounded, or are wounded instead of discorporated. It might also give you a chance of being discorporated instead of game-over killed. That last bit would just be a "oh please christ please please" because if you've put your sovereign unprotected in the path of that kind of stuff, you've probably already made your game-losing error.
It also could mean that early in the game, there is no feasible way of killing an enemy Sovereign short of tricking him into flipping off a dragon. This also seems rather thematic: people have to gather their power becafore they can remove their enemies.