Nifft said:
In a word: sure. Why not? The magic items in the DMG should be the best that's available. PCs should be able to create new ones if they wish, but not better ones. Price is one way to make an item worse.
I'm not convinced this item
is better than what's in the DMG.
Sure, it gives potentially unlimited healing.... But the time it takes to actually
do the healing is a severe limitation on its power. In some situations, it might be very useful - but (for example) after the first fight in a dungeon, are the rest of the inhabitants just going to sit around for three hours while the party heals up?
Even if there isn't a time limit, per se, on an adventure, whenever you're dealing with intelligent foes, you don't have an unlimited amount of time to defeat them. The more time you give them, the more they'll either be able to prepare for you, or get the hell out of dodge (with their treasure) if they decide they can't deal with you.
It's almost always the case in an adventure that the faster you can get things done, the better. I'd much rather have a simple wand of CCW than this item. With the extra treasure I'll be getting because I didn't give my enemies a three hour head start to run away, I'll be able to afford another wand of CCW for the next adventure, and probably a lot more stuff besides.