Yes, I know he meant OUT of combat. Doesn't change the fact, that this for example would affect the outcome of a fight. I.E. - half dead would be the same as almost untouched, and very well influence consecutive fights.
Edit:
Or in other words, as long as you don't take a lethal amount of damage during a fight you would never need a real healing skill.
(Again, not saying I agree with the OP, but) In the OP, he recognized that a free heal without skills or potions might be OP, so he suggested an auto-use of healing spells that the party already has.
In D:OS 1, I just finished a fight with a bunch of people half-dead, and it didn't matter much because I used healing spells to get everyone back up to full.