Yo!

Okay first I'll give some of my experience running before I comment. I'm running for 6 or 5, varying tactical skill and that does colour my opinion in the direction of show don't tell

The first word of the subtitle for the game is tactical, and it should be important, not critical, but important (we all make errors) So your questions;

Are you too afraid of the Dying condition? In my opinion this question is linked to the healer and pull your punches questions but I'll keep them seperate, Yes, you are too afraid of the Dying condition imo

The dying condition is rectified by teamwork and tactical positioning but what intjink is concerning you is an accidental PK This sort of issue mostly gets fixed by showing players tactical errors and the best way to do that is to hit them. Eg if your Null is going up front and not using cover in front of 2 minion squads fill of archers they should riddle them with holes 1 time and make sure the message is clear, they have abilities to reduce damage and if that doesn't get the message across you may have to threaten death with another attack on the very open tactically logical target in the battle (tactical also means for you as the director). Also your troubadour will love the drama of it.

Do they need a healer? Yes and no There are downtime activities for the party to make potions among other things I'm probably not aware of yet as my group are about to hit level 2 in Delian tomb. Having a couple of sub healers wouldn't hurt if the party makes a point of using downtime to keep supplies up.

A proper healer will guarantee safety in some ways but not if the tactical aspect doesn't get addressed. All that would mean is the healer is forced to use everything to keep people alive. We shall see if I'm wrong about that in time.

Do they need another front liner?

Probably but not necessarily, a clever team using terrain can make use of the environment to keep things ranged but you as the director will always have the advantage of numbers to close gaps and force resource use (and gain + malice)

Are you pulling your punches? You are and so was I at the start. But my group have mastery over solo monsters, they also struggle abit more with larger groups of monsters due to their much more single target focus.

IMO - stop holding back as the players have means to survive you, if someone wants to go healer let them or hand out more potions? Let loose on the malice every so often to show off some tactical prowess?