After giving this a lot of thought, and talking with some folks, I think I've found a solution. Or at least an acceptable compromise.
So here's the important parts:
- HP shouldn't be just bags of numbers where you're just as effective at 1000 hp as you are at 1 hp
- Death spirals are bad
- When possible, all resources should have multiple uses (adding choice and flexibility to players)
Here's how it looks
Each PC has Vigor and Health. Vigor is a lot like traditional hit points. Health is much less, being around 1 point per level (not really, but for simplicity of argument)
When your current vigor gets to zero or less, reduce health by 1, take a desperation point, reduce your Action Point pool by 1, and recover some vigor.
There are two statuses:
Rested and
Wounded.
Rested = full vigor and health with no negative statuses. Gain a benefit based on class description while in a
rested status.
Wounded = 1/2 or less of your health. When
wounded, you can spend your desperation points on things once per turn (like boosting speed, gaining a bonus to your rolls, etc.).
Some classes have abilities you can choose that keep you from reducing AP when you take health damage, so you as the player have a choice to avoid a death spiral if you want.
Avoiding the 5 minute workday
The players certainly can’t be blamed in wanting to be at full rest all the time. A way to mitigate this is to ensure you’re running the game as a living world. That is, the NPCs, monsters, and the clock don’t stop because the PCs are resting. Oftentimes the PCs may not have an opportunity to get that rest in, because they are being hunted, or there is a tight timeline in place.