Many RPG's nowadays implement an regeneration system. As in, wounds ( or any dertrimental effects ) are quickly healed.
A example would be Final Fantasy XIII, where you recover all HP after each battle. Furthermore, defeat only means setback until just before the fight. In return, individual battles can be lost quickly if you do not watch yourself.
On the flipside are classic RPG's, especially Dragon Quest, which want you to preserve rare MP Recovery. Defeat in battle sets you back to the last church safed, with half gold, but same exp and inventory otherwise. There are no safe points inside Dungeons, too. In return, battles are quick and relativly easy - the main tactical problem lies in using the limited resources until the end of the dungeon.
What other games use these System correctly? Which use it wrong? Lay out your thoughts on which system is better for which game.