Think about it, if you get DCd the Blizz servers should be able to tell fairly quickly. You are then "paused" (as if you had hit escape) until you reconnect. When you reconnect (no matter what) you are placed RIGHT BACK WHERE YOU LEFT OFF, with no changes at all. This way you can't get out of a sticky situation just by yanking your ethernet cable. If you're going to die, you're going to die, but this way I think is a fair way to handle some DC deaths that are not always the players fault! (Blizz servers have and will crash! We should not suffer because of this!)\
So, anyway, there's my idea!
Ready, set, discuss!
Edit - tl:dr
If and when you get disconnected from Blizzard servers, your game should "pause" until play is resumed on that character.
Edit 2 - Oh, and while we're at it, you should prevent players from selling any gear that was on the character or on that characters bag while in this paused state... that way no one is saving their precious HC gear from the grips of perma death.