I agree that the no end/health only helps the already winning group, and most of the other points.
To the people who think it is a bug, read the I7 notes. You can get there by clicking on the link in the updater while you are verifying files after your next crash. It says:
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City zones
In PvP zones, if a character releases to the Hospital, they will respawn with 1 hit point and 1 endurance. This is to enforce a short delay on all characters before they can get back into battle.
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Of course, this is only affecting the side that is already undermanned and dying, but, oh well.