IMO it's always lazy design when you use non-spell based, or item based (like dark souls) regenerating health. 

However, Xenoblade and Deus Ex HR both used it last gen like someone, and were some of the most highly rated RPG's (and imo best) so it's not the end all be all. But I didn't like that aspect about either game either.

Xenoblade also has a health regeneration system and it works fine. There is no need to manually heal your party after every battle which is great.

I will wait till get its confirmed, but I certainly hope it doesn't.

Now watch who freaks out and know who the most ignorant users are (if the VGC FF fandom has them like many other sites do). This is something currently being tested in a game which we know to not at all be casual. In fact, it takes more player skill than perhaps any other numbered FF... Albeit probably less obligatory grinding. Tabata has been very keen on talking about the development process. Furthermore, health regen has been a smart mechanic in games like Xenoblade and Deus Ex: Human Revolution. If FFXV were to use it, we would know that the amazing team put much thought and testing into the decision. 

On top of all of that, we already know that this game features items, loot, shopping, stat boosters, camping/hotels, and even cooking.

I don't have any problem with the game either, I just quoted an N4G article to open discussion. :P

there's plenty of good games that have it (Mass Effect, Dragon Age) are others. 

It reduces tension in dungeons and item management (Which was FFXIII's problem too). Ofcourse the item management needs to be done well. If you can buy 1000 potions for cheap, it isn't significantly different and items are more tedious. Regenerating health is much better than going into your menu after every battle and applying 10 potions to each character that cost you 0.1% of your total gil.

What regen does is it just let's devs gloss an aspect of the game and puts something in that works decently. But imo it is always worse than non-regenerating health done correctly.

Oh it is? Ah well, I'll live it with it. 

The traditionalist in me says keep the healing potions. The adrenaline junkie who wants to be in the moment when I game says regen works as long as some magical or logical reason (like master chiefs regen shield).

I would be ok if you would heal up after battle fully, without potions. In the midst of battle, you have to relay on potions and healing spells, it adds some strategy and micromanaging that makes fighting more engaging.

Now, one thing I would love and in my opinion would make sense is if the stamina/mana of a characters regens rapidly while taking cover or resting. It makes sense to me, a character takes a breather, calms down and then gets back into the fray ready for more.

This. It would lead to less deaths and more seamless gameplay for the casual to moderate gamer if thats what they are after.