I dunno that regenerative health needs to be done away with. We need look at the game. Most Action/Adventure, Hack n' Slash, like God of War but, Assassins Creed, Riddick, games all have health bars that require, pots, medkits, fonts, magic etc to heal. Cool...The "problem" lies in FPS's (oh and Gears of War...odd) specifically (in my experience) and I think it's all about how the developer wants you to feel in the game.
Having a regenerating health system allows you to move from encounter to encounter full health. The idea is you get full immersed in the experience, because you arent worrying about where the health packs are, or how much space your inventory has. You take your 2 or 3 guns. Find a wall to hide behind, blow everything away...rest up and go to the next encounter. If that is the "design of the game" - meaning the developers want you to feel fast paced action and not worry about health, then i think the regenerative health system is great and the flaw isn't so much with the system but rather that the encounters suck, aren't action packed enough etc.
Games like Far Cry, old school DOOM, Dead Space 1 and 2, the use of med packs, reflecting on the current state of games, is now used as a atmospheric device....does that make sense?
What I mean is, hunting for and acquiring health packs, or purchasing them, managing inventory space is now more about creating a certain...feel, to the game. It can create tension, make you take your time through a level or encounter, learn strategies to beat your foes, (of course the "see that part thats flashing, stands out or the game is telling you to shoot" deprives us of that strategy but whatever) adds a little something to the game.
With the current games being released now I think we need to view the system not as a mechanic of all games, but how it's used in a specific game and does it pull it off well. Does the regenerating health system add more excitement to the gameplay? Do you get to the next encounter and feel like it mattered that you could regen health?
If you don't like games that use a health regeneration system, it might be time to start thinking about health regen as a bias instead of a fad. If it has health regen maybe not play the game?
It can be done really well...imo CoD:MW did it well, Resistance 2...not so well. Resistance with blocks of health that regenerated and health packs to fill up depleted blocks...personally, i thought was inspired.
Main point...I think it depends on what the dev's want you to "feel" while playing. Tension = inventory and med packs etc. "Easy" Play through but exciting encounters = health regen. Also i think Multiplayer benefits more from regen.