I'm not sure I like regenerating health to be honest. In SP it's okay, but it takes the tension out of it. Getting almost killed and running into cover doesn't have the same dramatic tension as entering a battle with your health in the red and surviving it.
And it sucks in multiplayer. I'm currently playing a game called Frontline Mission Evolved which is basically similar to heavy gear, but more experienced players get better gear in multiplayer which means fights are uneven. When fighting a better equipped player, it's a pain in the ass enough to take them down without having to chase their pansy ass as they run away or for some magic armour regenerating health (or to just get a breather and regain their core health).
Regenerating health like any game mechanic has pros and cons, and while accessible and its good for certain scenarios I don't think it's necessarily the best solution.