Regen/Degen seem to be very powerful in the early stages of the game, and get less and less so as time goes on. Because low-level characters and monsters have low HP, conditions that cause degen will remove a significant chunk. The Mesmer hex "Conjure Phantasm" is a good example of this; in Pre-Searing Ascalon it is trivial to kill enemies using just this spell. Past about level 8 or so, it becomes vastly less powerful.
As someone mentioned before, regen/degen is 2 HP per second or 1 energy every 3 seconds, per arrow. It's capped at ten arrows, I believe, so you can't lose or gain more than 20 HP/second due to conditions and hexes.
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