I wouldn't be against it, as long as the amount of hp regenerated didn't exceed 7-14% of dmg received.
Why exactly 7-14%? Besides, if it is that low it is basically useless and not at all worth the coding time.
I would be against it, it promotes staying out of danger while you regenerate, basically slowing down gameplay. Simultaneously it allows classes that are mostly not in immediate danger, ranged and cav, to profit more from this than those that are, melee. Damage dealt should be damage dealt forever, without them being able to just walk it off. I personally hate games where you just not manage to kill someone and all that effort is useless because of health generation.
MAYBE, moving would disable health regeneration.
Really? Think about this one for a second, how exactly is having people standing still all over the place desirable for gameplay?