Hi Chopper,
This is a really good time to review the meaning of the word as well. The source you used "Vine's" is an expository dictionary, this is not a strong source for determining the meaning of words. W. E. Vine starts with his doctrine, which presupposes the immortality of all humanity (the wicked and righteous alike) and then defines the word from that presupposition. This is expressly how one does not define words.
The Greek word derived from the root which means "to die," simply means the end of life, the state of being dead. This word can be used metaphorically/figuratively sometimes, such as in the Parable of the Prodigal Son, where the Father speaks of his son once being dead. His son wasn't actually dead of course, but he used this to express a metaphor of their relationship being broken and separated.
To suppose it means conscious existence in separation from God is just crazy to me. No where in the definition of death does it denote the aspects of life. This is one of the primary and fundamental issues with the traditional view. It supposes that the wicked also have immortality, when Scripture is clear that only believers have such. That the wicked be totally conscious and living despite being dead/destroyed (both body and soul).
This I believe is because of the influence of Platonism on Christianity, the emphasis in this line of thinking is on the continuation of existence of an innately immortal. This is not the focus of the Bible, where Jesus doesn't just simply die and be a spirit, but he ROSE from the dead (not some kind of spiritual death but physical death). That same physical resurrection is now the hope we now have as believers, not that we will go to heaven when we die, but rather we will rise and reign with Christ over the New Heavens and New Earth!
God is not looking to throw creation in the trash bin, he is rather making all things new!
I think in my next post I will talk about the emphasis on God saving us from physical death, as it is a message that has gotten lost to the modern church who over-emphasizes salvation as being spiritual.