I prefer the default systems in the base game, and in From's Soulsborne titles, but I understand why it was added to this particular DLC (so that the difficulty could be balanced somewhat independently of a player's base level).
In Sekiro it allowed them to better curate the difficulty to their own vision, and that did make certain boss fights incredibly tough, intense, and rewarding... but I just love the flexibility and inherent risk of the Souls-y 'anything you kill or sell contributes towards leveling up, but if you die twice without retrieving unspent points then you lose them all' system.