To be honest; if it wasn't for Casual I'd never have bought and played Awakening. It was my first Fire Emblem game ever so I really like that that option was there (and well, it's
optional, so not something anyone has to do). It made the game a little less stressful, because as a newbie my head totally exploded from all the info I found on-line (and I like to have
some idea of what I'm doing (wrong), so of course I'll go looking for info). So the way I look at it is; an extra copy was sold and they had another happy customer (given that I'm planning on buying the three versions of Fates, yes; I'm a happy customer).
That being said; I do understand why people say the game isn't the same without Permadeath. I even agree with it somewhat. Just that I don't really understand the "resetting when a character dies" argument, because what's so different from Casual then? But I'm seeing some good points pro and con here, so this is definitely an interesting discussion.
I'm quite sure I'll choose Casual for Fates as well. Phoenix Mode, however, is something I'll pass on, though I don't have a problem with the option being there.