And no, saying "I bet you can wear an item/use a covenant" isn't exactly a good thing either. Handicapping yourself in any fashion to get by a bad design decision is not something to proclaim as "good."
It actually makes covenants for players that don't want to be invaded less of a choice in that you have to be in the one that prevents/limits it. This causes you to miss other things covenants can offer, weakening the system overall.
Dark Souls you had one that's only real benefit was lowering chance of invasion. Because this was only really felt in human form, you were kind of free to be in whatever covenant you wanted to for whatever reason you wanted to. Now you don't have that option. This makes the overall system "better"?
It may well make the overall system more meaningful as covenants can have more of a true impact, as opposed to Dark Souls' half-baked system. Way of Blue was added specifically to work alongside the danger of being invaded at any point, making both that covenant and whichever one you pick to be summoned as a Blue Sentinel have great significance.
If you consider actual choice and consequence to be "handicapping yourself," then we just gravely disagree on the concept. If invasions bother you that much, then make the choice to pick an anti-invasion covenant. That's what it's there for, and there's going to be a similar give-and-take for every choice you make in the game.
You hate being invaded? Maybe there's a non-invasion ring, and you'd be making the choice to wear it in the same way people who wanted to engage in covenant-based PvP would use up a ring slot for the Cat Covenant Ring or the Darkmoon Blade Covenant Ring. This is just another gear choice you are making. If you don't want to use the potential anti-invasion mechanics at your disposal, then you can brave the danger and reap other rewards.
These covenants can potentially be highly practical and communal. If it's like Dark Souls, covenants will largely be online-based anyway, every covenant will come with its own benefits that you get at the expense of others, and you can ultimately choose which one best suits your needs.
Dying
should carry strict penalties. Being in undead form should be a completely non-ideal state, to the extent that playing as human should be a burning desire and one of your foremost priorities in the game. It never made sense to me otherwise. The devs can do this by buffing human mode, which they still may, or by giving undead mode some serious drawbacks.
Much of this is still guesswork as we have little context for any of it. We know small tidbits but we need the full picture - specifics of the invasion system, item lists, covenant lists, etc - before we can really draw any true conclusions as to how effective or non-effective the new system will be. So far, it sounds fine to me.