“No, ’tis not so deep as a well nor so wide as a church-door, but ’tis enough, ’twill serve.”
Though all Dramatic Wounds do not result in death, the point of them is to convey a serious ramification to the player. Gaining a Dramatic Wound is a sign that your hero is actually facing a threat worth reconing with. If you are able to wade through the throngs of your opponents and barely get scratched, you probably aren’t doing something very heroic. (Or, you are a truely terrifying and experienced Hero who has earned the right to do so.)
Any Hero/Villain can recieve a number of Dramatic Wounds Equal to their Resolve time 2 before being kocked out. The step prior to being knocked out occurs once you have taken your Resolve in Dramatic Wounds; this is called being Crippled.
Henchmen can take only their Resolve in Dramatic wounds before being knocked out. In Mercutio’s case, he was a Henchman that was supposed to die. For the sake of the story he was given a lethal wound rather than just being knocked out. This allowed for some fairly dramatic discourse before he snuffed it.