I was just using the injury debuff in Dragon Age as an example but you guys do bring up good points. I personally don't see the system as bad or needing to be removed but like kseh pointed out, it mostly affects the people that are not very good at the game. The players who're bad at the game find the battles getting harder and harder as they go on because of the injuries their party members are sustaining. Those who are good at the game don't have this problem. Even if a member in their party does go down, they can just bring up their menu and use one of the potions that they picked up earlier from a drop. Since this player doesn't use them often, he/she has plenty stored up. They usually don’t even have to buy a single one of these potions throughout the whole game. So the system presents a lot of additional challenge for the unskilled or unexperienced player but poses as just a minor annoyance (having to bring up the inventory in the rare event one of their party is defeated) to the good or experienced players.
Now addressing what RedBaron5 said, one could argue that there is already enough incentive to keep party members in the battle. When one of them goes down, many battles become much harder or impossible to beat, especially on the harder difficulties. This incentive is apparent for both the unexperienced and experienced players. The question is whether there needs to be more incentive and the type of incentive that the injury system provides and whether that adds something positive to the experience. It obviously has added something positive to RedBaron5's experience and that's great but when designing games you have to think about all your players as a whole, no? There are also other, positive alternative options for adding incentive to and providing better satisfaction when you keep all characters alive that could have been implemented, such as an EXP or gold bonus or maybe a small increase in the relationship bar for all party members...wait no, that's a horrible idea as some players actually want to get certain characters to hate them. But you get my point.
In my opinion, the injury system would have been better left out of the normal and easy difficulties and implemented only in the harder difficulties. People who play on the harder difficulties are more likely to be experienced players that like to sit paused before a battle and plan out the best course of action before proceeding. Adding injuries to that mix and reducing the number of potion drops or making it more difficult to get them adds more incentive to keeping the characters alive and would add additional challenge to people that want to be challenged. Then the less experienced player or the casual player who just wants to rush into every battle, spam their party's best moves, and never even touch the "set traps" button in their thieves' arsenal won't be hindered by the injury system in the normal and easy difficulty.
Again, this is just my humble opinion and how I'd have done it had I had such decision making power over the game. The people at BioWare are waaay better designers than I am.
It is a challenge indeed to decide whether or not to implement a punishment feature and how to handle it so that it does not take fun away from the game. You could argue that some games do not have these kind of features at all. I would say the Sims doesn't really have any punishment systems. Sure, a character can die if you don't feed him but plenty of people set their characters on fire and kill them intentionally. Since you make up your own goals for that game, you make up your own punishments too! If a player's goal is to collect one hundred gravestones then a lot of the apparent challenges in that game become assets for achieving that goal. And no one can say that that player’s goals are less valid than any other player’s.
There’s also a game on DS called Fossil Fighters that I’d like to use as an example. I don’t know if any of you have played it though; it’s aimed at small children. Although the game is overall very easy a few of the battles can be challenging. However there is only on negative “punishment” feature in the entire game: breaking fossils. If you find a rare fossil, you can completely ruin it if you are not careful when cleaning it. This is especially devastating with rare fossils. The designers could have done several things with this feature. They could have gave you a second chance to clean the fossil (I don’t remember 100% but I’m pretty sure you could not re-do fossil cleaning in that game), removed the feature all together, or they could have given you positive incentives for cleaning the fossil instead. (Again I’m not saying that they should have done any of these things nor am I saying I don’t like this feature or that it’s bad.)
I remember reading an older player’s comment on the game saying that he’d often hand the game to his younger sibling to play because other than the fossil breaking, there was nothing that the kid could do to negatively impact his game. If anything, letting his sibling play would only benefit him as his monsters would level up and he’d get some new fossils, dinos, and/or items.
More and more I am seeing the importance of taking your target audience in consideration when you are deciding this matter.