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Here is the wording of the rule, as it should be, if I understood the idea of ATG correctly.
In the event of two heroes dying in battle, with at least one of them being level 10 or higher, neither of these heroes can be purchased again in this game. If the unlikely happens and two such heroes appear in the tavern at the same time, then you need to (cleanse your karma) buy one, immediately dismiss him, and buy the next one; buying a hero will cost 5k instead of 2.5.
That is, it only concerns two heroes, and not all of them, only about mutual death in battle with each other, and only about something similar to a "face-to-face" battle (or at least an exchange of a strong hero from one of the opponents).