Yep, I created a new handle and had it approved prior to my death wait expiring.
One possible work-around I can think of, if (and only if) a GM approved it, would be to create a new account, and have the GMs simply delete the old one.
Hopefully, they could take my hard-earned CPs from the old account, and add them to the new, but so long as it was done with the full knowledge of the admins, I can't see any obvious problem with the plan.
(The only reason I'd want to carry the CPs across is because with almost 14,000 CPs saved up, I could buy myself a (very basic) ship with them. Or continue to save them, if I join a faction and am assigned a ship to use.)
Since outright deletion is impossible, what about the possibility of either:
1) Talking to the multi-account department about making a multi account. (Since the original account can't be played anymore, with the character being dead.
2) Creating a new account outright, and having a permanent ban put on the original account with the dead character.
How often do the syncs occur, anyway? Is there an account option to receive news and emails from SWC, so I can stop checking in every day and trying to play, and simply return to the game when they fix the ability to create a character?