Even though keeping the respawn in the active city would make more sense, however I still believe spawning in the city where you died could be useful. For example, today I played in LV with my buddy, while LS was the active city. Lets say we had some fun which resulted in my accidental death. I respawned very far from him, in LS and has to make all the way back to there.
Small note: Be careful with the risk of abuse that comes with the spawning since some players could misuse the advantage of spawning wether in the active city or last visited city. So I guess the right choice would be the one where we can have less abuse.