Also need to consider a player who wants to change characters or when a friend wants to join for a night and the PCs are 5th level. Would you start off at the rest of the party's average HP or just let them be like monsters and have normal HP.
That’s what random charts are for! A chart of life events that whittle down your HP. J/k.
This is a consideration because the idea works best if you start at first level.
Random thoughts about the idea as a whole:
To me, as long as you have a way of dropping unconscious, I feel like it could work. As long as you can be dropped, you won’t have the ‘invincible character’ problem.
The biggest issue I see is calculating all that damage from however many hp would be annoying bookkeeping.
I liked the idea of the 9 lives rather than a huge pool of points.
But I also like the idea of spending a finite resource to avoid negative consequences in the short term but it puts you closer to death.
Failed a save? Spend some points
Need to heal some damage? Spend some points
Failed a skill check? Spend some points
I also liked the idea of having that number of points be based on level and have it refresh every time you level up. I don’t remember who suggested that. So instead of 1000 at first level, you have 100. At 2nd, you get an additional 200 on top of whatever you have left.