I always found games that have health regeneration... sort of cheap. Why do this? It can be abused a lot. Rather why not make it so food items and healing items as well as healers
become relevant and important for once instead of having health regeneration. This would also create a lot more immersion and make players be more cautious about what decisions they make and keep them on their toes amidst the challenge of losing health too fast.
I feel like food items should become more relevant and be usable out of combat to heal up your health but there's a bit of time of eating it down.
As for the blue bar (energy/magic?) I suppose it should regenerate but at a slow pace and require certain equipment to help boost it's speed of regenerating or something.