An idea about how to solve some of the healing problems

[Semirhage]

Why not, I'll give some feedback.

every player should have a status attached to them that changes how much damage they deal based on the percentage of HP remaining they have. The status should also increase the amount of damage dealt when you are above 95% HP.

Ooh. That's going to affect a lot of the game in very unforeseen ways. What happens when a Monk gets caught up doing a FATE? Are they going to get their butt kicked if they pull more than one mob? They're going to have a hard time staying above 95% health by themselves. What about Deep Dungeons? Or even soloing Deep Dungeons? Is Eureka/Bozja style content going to become much more difficult unless you stack constant heavy regen effects on yourself or bring a healer? Unless tuned very carefully, needing to stay at full health to access your full output could easily slaughter solo content, and that's just a repercussion off the top of my head.

If everyone is topped, you DPS

There would need to be absolutely no changes to any raids or dungeons whatsoever to facilitate this.

Hmmm, I don't believe this will change as much as you might think. For one, it changes the "good" HP threshold from "enough to survive the next mechanic" to "full". Which has two flags for me. One, holy overhealing Batman. Two, in most cases that changes the number of heal casts to deal with a mechanic from an average of 1-2 to maybe 2-3. And then it's back to 1111111111111. Making every HP lost a soft White Hole mechanic doesn't change the fact that outgoing party-wide damage is also infrequent, and healing a party to full from 1 takes relatively little time.

This doesn't suddenly make DPSing on healers fun, you'd still be pressing 1 for eternity, but maybe you be encouraged to use your GCD heals for once because it might actually result in a DPS increase for the raid which is what everyone wants right?

That's a personal no from me, but I get where this is coming from. I don't personally think "encouraging more GCD healing" in a vacuum would make the healer role more fun for me, because I think healer GCD toolkits are just as dull and horribly designed as the damage kits. *shrug*