If a ship protected from friendly fire dies, the things it is protected from are incapable of hitting the wreck. Protection should probably be removed upon death.
I don't see any reason for that. The only things presently using NFF, to my knowledge, are turrets.
From a gameplay perspective, these turrets have NFF to prevent them from being useless when there are lots of friendlies around, or when the player is sitting on the station. Having the station suddenly stop being transparent to turret fire when killed feels like a bigger leap than just leaving it as - is. It also makes turrets guarding clusters of stations(like the Dwarg have) into a headache.
@jbw: I agree with you for stations/turrets. But for shipwrecks, I think it is OK if wrecks are do not inherit friendly fire [though I'm not sure of the exact scenario.]
Yeah, I'm not sure about wrecks either. Makes for some interesting strategy/gameplay either way.