Yep, only Potions and regen or default healing mist heals for 1. The revive, heal on kill, heal on hit, etc, all heal like normal. That ability basically makes you think about what you are doing before you do it rather than down elfroot like a mad thing. Also allows you to take more grenades or tonics and instead of regen potions.
To be fair, people already should have been taking grenades and tonics from a numbers perspective. Regen potions' HPS is kind of peanuts compared to the DPS of the foes where people usually bring regen potions.
The problem with healing, barrier, guard, and armor is that they scale worse at higher difficulties and level gaps. Enemies do more damage, but the healing/armor stays the same. Dodging, CCing, or killing the enemy removes an amount of damage that's proportional to the amount of damage the enemy deals.
Suppose an enemy does 100 damage each hit, and they hit once per second. Chuck a stunning grenade at the enemy, now their DPS drops to 0. That would be equivalent to swigging a regen potion that heals 100 HP per second.
Now look at an enemy that does 200 damage per hit. The exact same stunning grenade now reduces their DPS by 200 instead of 100. But not so for the regen potion - it still only absorbs 100 damage.
The same goes for tonics and grenades that let me kill enemies faster, wiping their DPS off the board. Faster kill times also mean less resource use in general. If I try to heal through damage instead of killing enemies faster, the fight goes on longer and I have to drink more regen potions to keep my healing going. It's a vicious cycle of longer fight -> more need for healing -> fight lasts even longer.