Hm. I think I like that mechanic.
The condition track was interesting, but wouldn't scale to D&D very well. For instance, D&D characters seem to take fewer BIGGER hits than SWSE characters, which would regularly top their Damage Threshold. We were doing some quick math the other day and if we had run a combat using Damage Threshold from SWSE in our existing D&D game, every blow landed by one creature (which had multiple high-bonus attacks) would have tapped ANY of the characters' Damage Thresholds. This would have meant a five round combat where the creature banged every character down the condition track irregardless of healing (unless, we decided, Heal removes all conditions immediately).
In combats with creatures that have 1000hp (the dragon we've seen) the damage output expectations there would mean any level-tied Damage Threshold typed mechanic would have to scale enormously outside of level.
--fje