Yeah, dude, you can ignore me, but you came here looking for advice on an issue, and I want to help you. Take a step back and consider that the way you've responded to me here is exactly how you responded to your players when they brought up something that bothered them. If you just want people to agree with you, then you're in the wrong place.

I did miss the line about discussions of horror and likely death. It does still appear to me that there was a miscommunication about expectations when it comes to character death - either you or your players weren't clear about what those expectations were, which lead to the disagreement. That it was apparently a unanimous decision to end the game tells me there's a lot more going on here... a single character death in a table that has played before with character death would imply to me that the actual issue isn't that someone's character died.