So right now, in my opinion, resting is way out of balance. You can do it anywhere, anytime, with no repercussions. I have a couple ideas that could help balance it and make the world more immersive, since resting is such a critical mechanic in D&D.

First, after a long rest, make it go on cooldown for a short amount of time or in game hours. This would prevent taking a long rest between every. single. encounter. Currently, there is not even a reason to use short rests with how long rests work. Plus, it makes no sense sleeping 8 hours, fighting for essentially 1-2 minutes. Rest 8 hours, adventure a few more minutes, etc, etc.

Secondly, add a day/night cycle. This plays very well into the first point. Want to take a long rest at 1pm? Go for it. But now you are stuck adventuring though the night. And if there is a CD for long rests, you are then forced to adventure for at least some time in darkness, and need to really decide if sleeping through the day is worth it. Not having darkvision all of a sudden actually could become an issue. And it helps add a level of immersion, currently not found in game.

Third, allow 2 or 3 short rests. If memory serves me correctly, adventuring days in D&D 5e are designed with the assumption that players take 3 30-60 minute short rests to recover. And I know its hard to convert and balance pen & paper to a video game, but something that could help is to give casters some type of "arcane recovery" feature for each class during short rests.

My last point, is allow long rests to be taken in the area the players are at. If "outside," the party returns to their main camp. But in the Underdark, or other extensive dungeon areas, make the long rest be taken in that location with chances for an encounter.

Overall I am loving the game (already almost 40 hours played!), but the resting mechanic really stood out to me as needing some type of balance.