This has likely been talked about before but here it goes:
Our health constantly degrading puts us at a consistent disadvantage, particularly late-game where Fulings can take quite a lot of your health off in a single hit. 2-star fulings, for example, can still take up to a third of your health off even at 100 armor. So when our health is also slowly degrading we're actually taking constant damage which doesn't really seem fair given the high-tier food is actually a lot of work to make. Not to mention how wasteful this can make it on using health potions.
I would suggest that our health not degrade at all but instead will not go any higher than our food bar is at once we've lost that health. For instance if your food bar is higher than your health then you can only heal yourself to that point and if your HP is higher than your food bar then losing health brings your max HP down to that level until you are able to eat again.
Source: https://www.reddit.com/r/valheim/comments/oov8gd/i_think_our_health_constantly_degrading_is/