Ryujin
Legend
Losing hitpoints is best represented by minor slashes ("It´s only a flesh wound").
Returning HP during a fight is best represented by a surge of adrenaline or a spell that numbs the pain... (aka spending a healing surge)
I however do believe there is some design space for healing during fights. And actually I really would make "real" healing magic not "surgeless healing", but instead allow it to replenish healing surges.
And maybe you could have longer lasting wounds cost a healing surge that does not automatically replenish over night...
Given my experiences DMing a group with a Pacifist Cleric I'd definitely like to see the surgeless healing just go away, but replenishing surges with magic would have much the same effect as surgeless healing, IMHO.