I have yet to hear of anyone dying from eating habaneros, oh, they're hot alright, but they sure add a zing to food.
It has happened.It can paralyze the muscles in the throat and close off the trachea. People have, indeed died from that. I always ate the hottest peppers like grapes- didn't much feel the signature burn at all. Then one time in a diner I couldnt' breathe and couldnt tell anyone about it. After a minute or so I got my breath back.It took three such incidents over a couple of years before I cranked back on my intake. I don't eat the really hot ones anymore and even go easy on the tabasco.
For some real zing: Try eating habanero straight.
We grow both Habs and Serranos in our garden during the summer (along with Anaheims, Bells, etc). I don't even use the Habs - we dry the Serranos and use them carefully during the winter to spice up certain meals.