While bots are a little faster to get back into battle that clients are, they are under rez effects (20% hp and 0% mana). They do already have their equipment on, but I don't think it's too aweful. Against any mob worth worrying about, they won't last one round. I'm not sure what else can be done to make bots' death penalties more severe without just imposing an artificial respawn timer, which I don't like.
With regards to exceeding the spawn limit, do you know how they are doing it? I've fixed a couple of issues that allowed people to exceed the cap, but I'm not aware of any other issues.