Well, not a huge huge deal, its just not what I would have hoped. Regenerating armor means that there is less consequence for breaking your cover -- you can get into a firefight with three guys say, kill them, take a bit of damage, and this damage has no consequence for the rest of the level because in a few seconds it is magically repaired. This is an easy, imaginative, and less enjoyable game mechanic that one that is more complex and more RPG than action-game based.
Say, for example, your armor has a rating against penetration damage and resistance, so your armor can make you avoid hits to your health, or reduce the amount of damage done to your health. Or some other system.
In direct response to your comment: for myself anyways, I'd much prefer to die if I made some huge tactical errors, or screwed up my gun play so much that I got shot extensively. I'd much prefer dying to magically recharging armor. Having a bigger penalty for errors, and a chance of dying , makes a game more fun for me. It's not fun if the game is too easy that making a mistakes don't really matter. I find it fun to be challenged and overcome bad odds. And ya , early reviews are saying the game is pretty easy.
And not that I think games should be too realistic, but it is almost immerision breaking for me to have your armor regenerate -- doesn't make any sense. I hate to say it but I think they just did this because it was used in Mass Effect -- but which in M.E, at least it made sense in the game world, because shields could feasibly regenerate... but its not like a kevlar vest can repair itself. This isn't as a big of deal as health regen in Deus Ex 3 but ugh, I'm just not a fan of the system.
Sorry -- end of my off-topic gripe.
Sup.
You have an Endurance bar that regenerates - it just so happens that Armor contributes to this Endurance bar. Armor gives you a better ability to shrug off injuries as blunt trauma/minor annoyance and when your Endurance is out, then injuries hit your health (lasting damage). So yeah, your armor doesn't regenerate, it just contributes to your fast-recovery life bar.
Make sense?