Video games are one of the few places where failure motivates us to get back up. It's a temporary setback that allows you to keep going, teaching us resilience and the power of a second chance.
You term it in a very positive way but I term it as nothing but "hopium".
The hope of may be you will do better in the next game or in the next next game or the one after - gamer developers use this to keep us hooked is what I believe.
You will definitely get better aa you keep playing the game and this improvement will give you even more of that hopium drug. It is a cycle which cannot be broken unless you get genuinely bored of the game.
Correct. Failure in reality doesn't generally imply death. Unless, of course, you're a bank robber. In most other cases it implies learned knowledge that helps your succeed in your current objective. Failing during a job interview, for example, helps you get better at job interviews.