I go with a simple rule: I kill them, if their story arc allows it (that means, the death gives more to the story than take from the story). Mostly, if it´s memorable, the player will understand and maybe even like it. You aren´t in Westeros, you are in the Star Wars Galaxies, and in these Galaxies, PCs die dramatically. In my opinion, at least.
The most have touched the topic, but as far as I can see, here are my ideas
1) Save him. He´s a Droid, the body fails, PCs take the head with them. But it is badly damaged, only the legendary mechanic can help their friend... a legendary mechanic like Brandon Brightstar? But he is missing... new adventure!!! Or something like that, you get what I mean (and got the humoric interpretation I hope). F***k the rules, praise the story.
2) Kill him. But do not let him simply bleed out. He knows that he is "dying" and that he will fail in a short time. So he will have the opportunity to sacrifice himself by blowing something up or by a "Go! I will hinder them!"
You could say: "Your internal sensors indicating tat your plasma streams leak, the memory banks fail and the Kilorian acid vains are eating away your interior. There is no way to help you anymore, your failing." Then you could take away all wounds and critical hits, his last reserve. And than, he´ll be caring about for himself giving a glorious goodbye, or at least a memorable scene when he collapses on the escape shuttle.
Give every PC a great death, at least in this universe. My 2 Cents at least.
Edited by Narr666