It’s not about whether they can face it. The younger generations are more in tune with mental health and topics like suicide than any previous generation. The etymology of the euphemism was about avoiding online censorship, while its “IRL” usage was merely absorbed through familiarity from the online usage.
I've seen 'unalived' used as a synonym for 'died' or 'killed' by YouTube minecrafters (e.g. CaptainSparkles) to avoid YouTube's demonitization/censorship. For example, using "I was unalived by a skeleton." instead of "I was killed by a skeleton."