Realizing that my criteria is rather vague, my objection here is that it doesn't really address condition A. If there is plenty of healing magic, the character can be fully healed with relative ease. Moreover, a character can lose a lot of hit points over the course of a day or adventure and never take a "wound" to even need magical healing.
Maybe I'm not understanding your criteria A.
Criterion A said:
A. There is a finite limit on how much a character can take in a relatively small amount of time, despite external sources of healing being available (such as cure light wounds or potions of healing).
In my draft system:
Finite limit: your hp
Amount of time: between the DM-specified recovery periods
External sources of healing: next to irrelevant, interacting as a second-order
Notice that I said Healing magic would only erase the wounds, but not restore the hp. You'd still be at 0 hp, and every subsequent hit would trigger the wound roll. (The specified recovery period, or a Warlord's
Rally ability (or whatever) would restore the hp, but not the wound.)
If you're worried about somebody always rolling 1's on their injury roll, then make the injuries stack, so that taking a light wound while already lightly wounded yields a serious wound, and so on. (I suppose that makes your limit: your hp + 4 hits maybe.) However, they don't call it the "Death Spiral" for nothing. Dropping to 0hp in this system would be a very serious moment in the fight.
If anything, my draft system may not meet your Criteria B:
Criterion B said:
B. The system is elegant, reasonably simple to use and track, and at least nods towards game play and simulation of a typical D&D universe. For example, it's ok for it to support gritty play, but not if the grit excludes more epic play. It's ok for it to model the physics of healing somewhat, but not at the full exclusion of all game decisions.
elegant & simple: I think so, but that's fairly subjective.
nods to ....typical D&D universe: its not BECMI hp, but again "typical D&D universe" is rather subjective and variable.
physics of healing...game decisions: not sure what "physics of healing" means, but I don't see how my draft system particularly hampers any game decisions
Nonetheless, its impossible to objectively satisfy subjective criteria.
Another way of thinking about criteria A is that characters can be worn down, but can still operate well enough to keep going when somewhat worn down. An example would be, say, a party of 7th level BECMI characters with a few potions and clerical magic, set in a campaign and in a group where the DM worked hard to keep the balance of such healing congruent with the risk and flow. That is, that's an example of a matching result, even if the BECMI rules didn't satisfy the criteria either.
I seems to me that your first sentence is precisely what my proposed system does. Of course, its precisely what just about every system I've ever seen does, so that's hardly surprising. The rest of your paragraph is essentially meaningless, AFAICT. Perhaps I'm missing a lot of inferred context?
Theoretically, you could get this in a BECMI-style game (or some aspects of Next) by having healing magic have diminishing returns. A healing spell works great the first time, but then your body has to rest to make up the difference before it will work at 100% again. Cast enough in a short time, it stops working at all. However, explore making this mechanic robust and simple, and you'll end up putting limits on healing at the character's end, not the source of the healing. Explore a little more, and you'll end up with something like surges.
"something like surges"? Wait, so, if I come up with a system that places character-end limits on healing/unit time, I'll probably come up with "something like surges?" Somebody inform the press.
Look man, its okay if you still like surges better. They are a fine mechanic AFAICT, I don't have a problem with them. Nonetheless, I'm confident that they are not the only way to skin that cat.