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I voted for the second way, SF-style. I don't consider it inferior and I like that it requires no book-keeping.SF still requires that you track hit points. It's *less* book-keeping, not no book-keeping...
I haven't seen SF, and obviously I misunderstood the OP's description of how it works there. I'm confused. Of course you track hit points, I was referring to the need to track lethal damage and nonlethal damage separately. The OP's description implied, to me, that this is not the case. What am I missing??