Drosophyllum seedlings do have a tendancy to drop dead for no obvious reason. I've just successfully succeeded with two out of three seedlings that germinated in August, however. I kept them sitting in water, but drying out slightly between waterings, and they've done fine. They have a tendancy to wilt if kept too dry, and a reliable Drosophyllum expert informed me that he keeps all of his seedlings sitting in water. I've actually seen some seedlings he'd grown in this way at a CPS meeting. There were hundreds of them, and they looked very healthy. I bought one of them, and grew it into adulthood. Keeping the compost wet in this way is contrary to the advice in books such as 'Insect Eating Plants...' & 'The Savage Garden', but it does seem to work. In contrast, my adult plant seems perfectly able to tolerate bone dry soil with no ill consequences. I water it only when the leaves begin to appear less dewy than usual. Give your plant as much light as you possibly can, and don't ever transplant it. It'll produce a lot of dew and smell of honey if it's happy.
Good luck,
Greg