I think that they're still trying to gauge feedback on their ideas, or else we would have seen more specifics about the change and possibly even a proof of concept.

As long as the heal or die condition exists on Living Dead, there are going to be player complaints about it and there will be a need for UI changes to support the action's use. It fundamentally does not make sense for Living Dead to have a longer cooldown than Holmgang while having an extra punishment condition attached. If they just get rid of that instant death condition, then I think pretty much everyone will be happy with the proposed self-healing component regardless of how it gets tuned. If they don't, it's going to come up again and again.

Ideally I'd like to see something done about Oblation's underwhelming effect as well, but if they get Living Dead and Blood Weapon right I could learn to live with it.