I totally agree. It's actually very immersion breaking and it works like an exploit bug. Resting feel totally disconnected to the story you're writing and it's absolutely not an interresting part of the gameplay...
We definitely shouldn't be able to click that button everywhere without any consequences and it shouldn't work as a fast travel. Resting has to be part of the things players have to manage and think about. Not the cheesy way to heal/restore spell slots/skills...
Localized rest won't solve anything about that mecanic, but it will are least solve everything about immersion.
+1 completely agree. More than the mechanics of it, it's the immersion breaking that causes the most damage.
I would be in favour of having dedicated long rest areas, if you're in a dungeon the tension would build as your party is slowly weakened and you're desperately hoping that a safe place to rest is around the corner..
I remember the mechanic working well in BG 1 + 2. Most of the fights would be about economy, not losing too much health or spells before you reached the big fight that you knew was coming. I remember on many occasions my party being bedgraggled, bloody and on its last legs, but somehow bravely defeating the big bad at the end, maybe losing someone.. But that's how the story went. This is missing with the current rest system because i know i can rest between each small fight so that I'm brand spanking new for the big fight at the end