Just remember that regenerating health also means you can get away with giving players less health. If players die as quickly as they do in COD games (3 bullets on average at some 700 bullets per minute), non-regenerating health would be frustrating. If you'd get hit by just a few stray shots you'd have to backtrack and get health again. This would slow down the game immensely.
So while regenerating health makes the game more forgiving in getting hit by a few bullets at a time, it also makes the combat more merciless. Step in the wrong direction and you're killed before you can blink. Because of that you can make a game that everyone can enjoy without having to give players enough health to absorb half a magazine of light machine gun ammo.
So yeah, regenerating health (or preferably shields) has its place in fps games. It just shouldn't be thrown into games that don't fit it.
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