Magically regenerating health removes one more facet of strategy separating "interesting and unique interactive challenges, that are also fun as balls" from "PRESS BUTTONS NAO!!!!!!"
I believe Far Cry 2 did this, and it actually worked out fairly wellJordi said:What's the alternative? Stuff like potions and health packs aren't exactly realistic either. It depends on the game what works best.
Personally, I think a system where you have multiple health bars works the best. You can regenerate all of the health in one bar over time, but when a bar is completely depleted, you need some sort of health item to get it back.