^Health always regenerates, it's just that the health regeneration rate depends on strength.
I've been playing it for a few hours, so far gameplay has been the same as in Ego Draconis. But performance is better than in the ED (although FPS seems to be capped at 30). There is also no longer mouse lag in menus.
I noticed new dialogue options a couple of times, but perhaps this is maybe just me misremembering things.