Not really a problem for me as I wont have Halsin in my party but it may affect others.

This contains info about Act 2 so I'll spoilerise it.

Last Light inn. I've deliberately not done the Marcus fight yet but I have done some other stuff including starting the Wake Up Art quest. I've progressed that quest enough to get Halsin in the inn. Now, if I were to lose the fight . . .
Isobel abducted, barrier collapses, everyone goes hostile, big fight and all hostiles killed by party and Jaheira.

Will Halsin be dead? Will his death affect any other quests? Maybe he has the blessing thing.

As I said, it wont affect me but others who don't know there is a fight in the inn and are not expecting the consequences of losing that initial fight (I certainly didn't and wasn't) may have their play through upended.