Bardbarian
First Post
Actually you should re-read the spell perhaps.
"Does your narrative require the party move on immediately although injured? The spell takes too long."
The caster can shift using bonus action the position of the spirit point 30' every turn. That means "advancing" at normal non-dash speed is just fine with the ongoing healing OOC of this spell. Each turn just move it to 5. ahead of the lead character and the characters in turn go thru that spot as they advance.
So the net result of your second case is more like "do you have to dash to the next encounter instantly" with maybe an adder for "or are attacked within 10 rounds of the last fight" which would actually seem more like one "extended encounter" not a second encounter and also the combat use would still be there, just a little less effective.
But as you observe - as has many of the ones saying that it is too good - it is very much situational.
Campaigns where short rests or long rests between encounters are common and routine will find this spell mostly meh... just like they will other things that try and help restores resources without rests. That being rather a departure from the anticipated model, my bet is other balance issues creep in across many areas. A LOT of 5e is built around encounter rates, rest frequencies and resource management and this is no exception.
or, you know, maybe its fine and great and then all that is left is pondering why they "intended it" to be a fraction of its current power, published it with its current "non-intended" power, then cut it back to that fraction with a house ruling suggestion and so on when it is in fact just fine as published anyway.
Sounds like your narrative lacks urgency and you are really in scenario 3.