OK, let me try to address some of your points, first saying that I'm glad to have the feedback and I'm truly trying to explain, not defend, in what follows.
It seemed from some of your posts that you were getting frustrated. And your feedback didn't seem
all that harsh

, but that's partly because of 'GM Knowledge' not available to the players - specifically the knowledge that, while the different rooms in the dungeon may not seem related, they are. Just not in ways that are necessarily apparant to the players yet.
One of my goals for this game is to put together a LONG term plot line, with stuff going on behind the scenes the characters may or may not eventually come to know. So, much as in real life, things may appear crazy or unrelated on the surface but they do have their own internal logic.
In regards to the healing, here is my frustration. It seems to me that combat damage in our games has become very black and white. The only concern in any given fight is whether or not the group survives long enough to kill off the last opponent - as long as everyone doesn't die the group will likely be fully (or almost so) rested and healed for the next fight. For example, if this were a typical game the proceedure would be for the group to return to the surface, and through whatever means are available (potions & spells, usually) the group would be entirely healed up by the time they returned underground. This is a simplification, and it doesn't always work out this way, but it seems the
physical challenges are often isolated to each individual encounter rather than lasting across the entire adventure (or even campaign).
At the risk of spoiling some of the 'atmosphere', let me say that I
will not kill anyone permanently - we all put way too much time, effort, and emotion into our characters for that to be at all enjoyable.
I thought it would be cool to instill a sense of ongoing struggle and challenge. Rather than struggling through one major combat, healing up, and then struggling through another, I want to put in combats that are (relatively) easy to get through - and no one has been near death yet, I think - but that add up to an overall challenge more like what you'd find in a book or movie. Make the game as immersive as I can. But that won't work if healing is too available or easy, because easier combats are also easier to heal up from.
It should work out that Skath's healing is not only useful, but vital - those few points he can heal should be what allows the party to survive the adventure and get to the resting point (like Rivendell in 'Fellowship') where they can recuperate and be ready for the next challenge.
I thought online gaming would be a good medium for this type of game, but it may be just the opposite - it may be that because it takes so much real time to move through game time, this type of game is more frustrating than enjoyable. That's what I'm trying to find out through y'alls feedback.
The bottom line is this should be enjoyable for everyone, so I'm trying not to let
my ideas get so solidified they get in the way of that.