Dragonblade
Adventurer
What I find interesting is that the paladin got hurt bad enough that he was out-of-action for several weeks. A roleplay thing? Maybe. It does suggest that healing is a little tougher to come by.
I don't care for this at all, but as long as there is an option for encounter healing 4e style, I'm ok with it.
IMO, its basically telling the paladin player, "Sorry, we're going to keep playing D&D and having fun. But you're screwed and can't play anymore. Sucks to be you. So, why don't you go off and check your e-mail or something."
Another reason I don't like long term healing is it screws up adventure flow and can completely derail a story. Let's say you are rescuing a PC's kid sister from some gnolls, and you have to get to her before they sacrifice her to Yeenoghu.
Well, lets say the adventure goes poorly in the first encounter and the players are low on HP and other resources, but they survive. If there is limited post-encounter HP or resource recovery, then to press on would be certain death. Hmm, that kind of sucks. Talk about a crappy ending to the story. To go back and take your bedrest, means you can't save her. That kind of sucks too.
Sure, in an old school game, you could just say "them's the breaks" and let the gnolls kill her. Some players like that grim cruel world approach, but most of the people I have gamed with don't. They want to be challenged, but they want to ultimately have a reasonable chance to succeed and if they feel the game is stacked against them, they won't want to play anymore.
So, what usually happens is the DM handwaves it. You find a cache of potions, or the gods aid you by healing you. I personally find that kind of DM fiat unsatisfying. Its like the game has failed, so the DM has to cheat to make the game work.
So what I prefer is a game that provides PCs enough post-encounter healing and resource recovery that even if they roll horribly and just totally botch that first encounter, they still automatically recover enough HP and other resources automatically that they can reasonably press on. They are not back to full, but not totally screwed either. And while the second encounter should now be a bit harder, its not certain death.