In Bang!, does the distance between characters decrease when a player is eliminated? Or, if a character is at a distance of 3 from you, will they always be a distance of 3 from you?
An eliminated player no longer contributes to distance. If this were not the case, in a large game you could quite easily have situations where nobody could reach anybody else for many turns in a row.
From the rules:
When a character is eliminated, he is no longer counted when evaluating the distance: some players will get "closer" when someone is eliminated.