Making it so the ships you sank did not respawn could have some very huge implications.
Essentially it would turn SH3 (and GWX) into a "what if" type scenario where a single Kaleun's actions could create devastating ripples in the space/time continuum that could alter the outcome of the war.
Given America's role, Germany would still lose due to the obvious military-industrial production of the U.S., but you may alter events to the point that Britain might just fall to the Reich or Germany came out in a stronger position to make the war drag on a few more years (which might make getting a Type XXI U-Boat less of a tease).
I'd sure hate to be the one that had to script such a campaign, but it does shatter the illusion when you sink a ship like the H.M.S. Hood only to find her merrily sailing along a few days or even hours later.
I suppose the only way to balance such chaos that could create would be to make your odds of survival the same as it was in reality, a 75% chance you'd become fish food every time you left port.
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Still sailing the high seas, hunting convoys with those who join me.
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