And you're mistaken -- on both points. The thread is not asking how to figure out a reasonable result, it's asking, "What is a reasonable result?" He's already decided how he's going to figure it out -- by asking the lot of us.
So your advice is that he should take further questions about reasonable results to us? If so, I disagree - reasonable results should be a matter for the table to decide. We can offer suggestions, sure, but ultimately, GamingInSeattle is going to have to deal with his own gaming group, and come up with results that said group finds reasonable, not results that the forum finds reasonable.
My response would be that, because he's been Taken Out, it's my decision what the result is. I'd listen, and if it sounds better than what I had in mind, I might go with it, but given the rules, it's my decision, not a negotiation. If he had wanted to have more say, he should have taken the consequences and stayed in the fight.
I didn't phrase this as a "after I've decided I'll take the consequences". Even you admitted the player should understand what the stakes are, i.e. what they're going to lose if they don't take those consequences - and then, if that's too much, they
can suggest an alternative - which you can then take, or not take. Sounds like negotiation to me.
Ultimately, whether to take consequences or fold is the player's choice. If that is a sufficiently informed choice, then there's room for negotiation - the player can suggest alternatives, the table can revolt and say that being reduced to a pile of ash isn't reasonable, and so on and so forth. If that's not an informed choice, (such as in Belial666's example), then the only reasonable choice for a player becomes "take the consequences, because otherwise something much worse could happen" (or, if I ran into Belial666's example, the reasonable choice becomes "leave the game"). The only case where there's no room for negotiation is when the character literally can't take the hit. Thus, that's the only case where they completely lose control of their fate.
Concessions are for negotiating. If you're taken out, then the outcome is by definition no longer in your hands.
In any game -- even this one -- sometimes you just lose a fight and have to deal with the results.
And oddly, I agree with all three of these statements.
To Belial666: I had some witty responses written up, but Mr. Death beat me to the punch. Please read his response and take it to heart.