That is awesome. So if the PCs spent, say, 12 hours in a village in which four men were mauled by a bear, three children fell down a well, two guardsmen were ambushed by goblins, and a partridge tumbled out of a pear tree, all those injured folks will be fully healed, come the morrow. Definitely awesome.
That's definitely right.
I don't really see a consistency problem with overnight healing, however.
Bye
Thanee
The characters are beaten to a pulp in the fight of their lives, they barely survive and all their heal surges are used up. They take an extended rest and boom! All health is back. If there was no access to a healing power, how do you add it to the story that they are fine and dandy 8 hours later?
In a game where you have magic that can raise the dead, create things out of nothing, spontaneously regenerate any creature....
....there is a problem of suspension of disbelief that someone might -actually- use these things outside of battle, and that such a system could be explained as easily as 'You heal to full at the end of each extended rest.'
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There was big argument along these lines before 4e came out, dealing with the idea of a high level (10+) NPC fighter or cleric being killed in a bar brawl or by falling from a horse. By the rules, that simply can't happen. The PCs, who, in character, "know how the world works", would be right to suspect Something Was Up, because you simply can't kill someone of that level with trivial damage. He was poisoned with a Con poison so his hit points were very low when he fell from the horse. A high level rogue, disguised as drunked traverngoer, did a 10d6 backstab and rolled really well. Etc.
Some people (me) argue that such an attitude creates a lot of confusion, as players can't apply their knowledge of the universe and draw conclusions from it. If "the rules" may or may not apply at any given moment, the players never know whether to use their rule knowledge to see if "something is up".
The healing surge is not intended to have a parallel in real life. It is intended to have a parallel in heroic fantasy cinema and literature.Although debates like this happened in previous editions because HPs are an odd abstraction, they were nothing like what we get in 4E with the addition of the utterly bizarre healing surge mechanic which has no parallel in real life. The only answer is to accept that it has no parallel, stop trying to call it moral or make some other excuse for it being a simplification or abstraction for something because it's not.

(Dungeons & Dragons)
Rulebook featuring "high magic" options, including a host of new spells.