Please read the question and share your thoughts and provide your answer in the poll.
Moosh elaborates the nature of the discussion below, I'll just quote it here:
So since NJF didn't put the reason for this debate in the OP, here's my reasoning.
The fact that falling in lava teleports the player back to the start of the screen to creates a disconnect between gameplay and logic.
If it's a game where you can walk through lava and take damage then in that case it makes sense that you'd catch on fire. But when the game teleports you, I think that's the game's way of saying "No, that didn't just happen. If that happened you would die." So because the game is undoing something that shouldn't have happened it makes no sense for there to be consequences for it. It makes no sense for the player to catch fire after falling in lava, just like you wouldn't have a floating sky castle have pits that drop the player somewhere on the overworld.
My question is, would this be a gimmick you'd be for (assuming the effect is not too punishing or it builds up or is inflicted randomly), or would it be too logically absurd (taking Moosh's explanation into account).