I can understand regenerating magicaka (even though i`m not a Mage type) as I see it working the same way as Stamina... You rest a bit you`re energy returns. But I can`t stand regenerating health. This is the same crap now used in many 1st person wargames. It feels so unrealistic in a shooter fight- You get hit by a bullet, you dodge behind a building, you`re health goes back to normal? No.
You should struggle on until you find bandages in the shape of a health pack. Now a health pack is not as realistic as real life, but it`s a lot more realistic than you`re health magically going 100% from, let me see... NOTHING after hiding behind a rock.
p.s. that said Master difficulty does regenerate health a lot slower.
Skyrim is much more different than an FPS game, especially ones with player versus player aspects. Regenerating Health in player v player games is bad. In Skyrim, you can do a wait or use a basic healing spell until you are out of mana or consume pots. In TES you could ALWAYS do this it was just tedious. Not challenging, just tedious.