I think there's a solid middle ground, and I hope this system finds it.
A death spiral in which the penalties grow too onerous is no fun to play with. But a mild spiral is, to me, tolerable enough, and I'm one of those who has a conceptual problem (though I don't let it bother me all that much) with the "perfect, perfect, perfect, perfect, unconscious, dead" aspect of HPs without such a mechanic.
And frankly, I'm all for the notion of a single "conditions track," in which injuries, nausea, fear, and the like are all accounted for one a single continuum. I think it's all but brilliant, and I fervently hope that such a system, if it's proven workable in Star Wars or some other prior game, does indeed make it into 4E.