From a DM's perspective should the entire party to survive

it depends heavily on the players

Depends on the players, the setting and the style of story you're telling.

Personally, I prefer everyone reaching the end of the story. That doesn't mean they don't struggle to get there, but personally I always feel like death is a boring consequence for failure. It's the end of the story, rather than leading to having to deal with failure or loss of something.

>>51337484
What's the point of having hit points then?

>>51337501

To determine success or failure in a particular encounter. Hitting zero is a failure state and if everyone is taken out then whatever they were trying to achieve, protect or whatever is forfeit. The story goes on, but in a negative direction in terms of the players goals.

>>51337501
if the players reach 0hp, it should be due to the players making a mistake not because the DM wants drama or plot

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>>51337459
I love Pyrrhic victories, but that doesn't mean your players will. Be careful and know what the people in your group like.