i'm sure this has been answered before but as i'm relatively new i'm gonna ask anyway... How is eliminating resting in any way realistic? After a certain amount of waking hours you literally NEED to sleep. Also... going long periods without rest leads to muscle fatigue, impaired judgement etc etc. which translates into the game into a limited amount of special attacks/spells a character can cast before exhausting his body/mind and needing to rest.
In regards to the connection between resting and healing yourself...if my recollection of BG is accurate i think the idea was that *healing spells were cast on rest*....meaning that your healers would auto-use the remaining healing spells on your NPC's so you didnt have to do it manually. The fewer unused healing spells you had the less your party healed on rest with minimal amounts of health gained if you had no healing spells left (which would be similar to what bandaging would accomplish). The idea was that the healing was still of a magical nature (even though you didnt have to manually do it) and not that sleep would miraculously heal your gaping wounds.
There is merit in the idea that resting should be restricted depending on the location (nr. of times or time spent resting - 8 hours in inn, 6 in wilderness, 3 in dungeon for example - etc) and that the health gained (strictly from resting) should also be proportional to the time spent resting and the conditions you would be resting in (warm blanket in inn as opposed to using a rock as a pillow for instance).... but to eliminate resting altogether is in no way realistic and imho the concept of resting should not be removed.