Okay, I think it's interesting you say this, because a crucial thematic component of
2 is based around the fact that, essentially, for all intents and purposes, Blades
do die. Their current life ends, and their memories and experiences stop and do not continue. Each subsequent resonation is, effectively, an entirely new life where their personality is partially influenced by their new Driver, and partially informed by all the data received at that point. When a Blade dies and resonates with another Driver, it retains zero memories of its past life and is reverted back to its default state, plus a "firmware update". This is why Brighid keeps her journal, and why Roc is so oblivious to Vandham's existence that it makes everyone uncomfortable.
Also, keep in mind that core crystals, in Xenoblade 2, are computers that send data back to the Trinity Processor between resonances. Blades, however, are living beings created by the core crystals as avatars in order to interact with and gather data from those living in Alrest. It is naturally presumed then that the core crystals found in Origin are similarly computers that store each living being's data, while the characters in Aionios are similarly living beings that are avatars born from the data within those core crystals.
So when
@FeiFongWong is suggesting that every single person alive died, and you point out that they were actually alive because they were contained in the core crystals, I had to say something because I feel like your exchange underlined the thematic gravity that the role core crystals play in the story of Xenoblade 2.
Fei is right, because yes, every person did die from a functional perspective. Their experiences and memories ended all at once when their universes collided; the people inside Aionios are, from our point of view, continuations, even though they are quite literally data copies of each person including their memories.
But you're right, too, from a more holistic perspective. If an exact copy continues on and it's indeterminable whether it's the original or a copy, and it carries the same hopes, dreams, memories, talents, personality, and trajectory as it's original, who's to say that person is not alive?
I don't think it was said anywhere that Blade memory loss upon death was due to said memory being sent to Klaus. As far as I can remember, and after having verified this, the data is continually accruing and being sent back to Logos and Pneuma at all times, even while the Blade is active.