I think Native muds can die, but if you purposely (according to the game) kill them you get bad quarma. I forget which level it was, but one I had to throw muds between platforms, and kept dropping them to the mines below. And I got very bad quarma on that level. So I guess as long as you don't throw natives off cliffs or onto mines, or kill them by slapping or shooting, you won't lose quarma.
As for whether you get a "perfect ending" or not, in the previous games even if you missed a couple muds you got the perfect ending...but now there are more factors to quarma, so my theory may be wrong.
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