Imagine that.. characters actually taking damage in combat and having to rely on intended forms of healing. I'm not sure why people are frowning at this concept.
I can only speak for myself:
For me it involved a whole strategy level in combat which is now just gone. I am still in my first playthrough with characters around level 15. None of them has any resistance which is greater than 50% (with gear and so on). Now, when I was in combat, there was a strategy planning involved like: Do I cast an earth shield so that my stunned witch who is very low on health standing in the pool of poison does not die during the next turn or do I try to finish off the one spider who is standing next to my witch in the poison pool and is going to heal and attack my witch? Do I now take a fire resistance potion because my warrior should walk over the fire surface without burning or do I try to blind the enemy archer?
I think, the ability to have resistances >100% was a very nice touch to the game. I am not against the hard cap for resistances on gear - but please allow us to drink potions/cast shields etc to raise resistances over 100%.