"Each time you burn a Hero Point, you are buring an XP. To deny themselves a little pain now, they are costing themselves a lot of advancement."
No they're not. If the characters get pasted and killed, there's not a lot to spend these experience points on, is there? If one of the player characters get's knocked out of the contest it probably means the others are going to fall over rather quickly, so you do all you can to stay upright. The NPCs are doing it, so why shouldn't the players?
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