Well, consider a ship where the entire crew is "out of comission" by two torpedo hits.
My crew is not a jar of flies, or at least it shouldn't be. Even with the fact that Sci Captains can get a small buff to crew regen, i'd loose half my crew, my ship would stop healing itself, then i'd die.
Course then I found a Mk XI Biofunction Monitor and I die less often.
But yeah, the mechanic really needs to be fixed...