In my opinion, it is a give and take...
With this new system, your characters no longer lose maximum health without being knocked out. In the old system, just taking dmg will eventually lead to the need for rest from fighting despite having never been defeated. It made healing in combat feel like only a tempory fix like a hasty bandage instead of magical intervention.
The old system was very interesting but I am definitely willing to give this one a try, especially with the changes to resting they have added.