Not every encounter should end in bloodshed, IMO.
True, though I think the "random encounter" tied back to the 15-minute work-day is the sense that threats from Ye Olde Wandering Monster Table (yes, there was totally a wandering monster check in AD&D) created incentive to not blow all your resources and count on being able to restore them all unmolested. Sketchy merchants and the wandering harlot table aren't the kind of encounters you worry about cropping up because you're short on HP and out of Fireballs.
Raiders, Thieves, Spies, Bullying nobles? Yeah, those could go badly. The idea is that you don't use all your combat resources at once because there's a significant possibly someone or something else could pick a fight with you before you get them back and it'll all end in tears.
- Marty Lund