The toolbar has about every possible thing you need to play fights intelligently. Abuse the systems Larian has given us! To be fair, I always felt like I was playing DOS2 really stupidly.
- Positioning matters. Run away around an object.
- Know who has a reaction. Use that to pressure enemies instead of the other way around.
- You don't need to be at full health every fight (a tabletop DM will tell you when you can take a long rest).
- Characters can go down mid-fight. Use Help, a lot.
- Scout, hide, fight like a dishonorable fiend.
Players shouldn't need to rest as much as people are doing. Resting after every encounter is not helping you learn to use the systems as a whole, and combo effectively across the classes. I actually think I'm not resting enough, because I'm way behind on party character development.
I think a decent compromise might be to let players have a single low level spell slot back on a short rest. The wizards should still get their arcane recovery for higher levels.