Then I have no idea what you're on about and frankly I have given up trying.
You...tried?
Anyway, as mentioned earlier abilities aren't whats restored. You have energy in the form of Mana and/or Stamina.
That is whats restored, and you can spend it however you choose.
Passive recovery in this context is slow, meaning you can gain some of this back naturally over time, but to fully restore you either need potions, or need to take a considerable amount of downtime, which means you're not out adventuring, meaning you don't get components or gold to make or acquire potions.
You want passive recovery because, it makes sense, but also because without it you're prone to soft-locking people if they can't get potions.
The DM controls what is in the game world, which includes any resources, such as what you need to craft your mana potions.
You didn't answer the question. Did you read past what you quoted or did you not understand what you read?
Well they still need to get the DM's permission effectively to do that so
I shudder at the state of your table if players need permission to play the game. This reeks of a
horrendous GMing attitude.
So what's your problem with the DM controlling (to some degree) when you can rest then?
Because its contrived, unrealistic, and isn't fun for anyone, including the DM.
So I've yet to see an RPG with a functional economy built into the rules
You should read more RPGs. And you're overstating what a game economy has to be anyway. This is less Gazillionaire trader sim and more just good synergy between costs and item rarity.