Hi there,
I don't think I agree with this suggestion. SkyWars is partly strategic. It's not like an FFA gamemode where everyone gets the same loot and everything has to be entirely fair. In SkyWars, you have to think about "If I kill this player, who might come after me?". I think if you regenerate after killing someone, that would defeat the purpose of SkyWars.
Thanks for your suggestion anyways. :)