quick pausing of BG is great, you need this feature to ensure you get everyone fighting, etc. It'd be pretty frantic if you had to rely on your eye and reflexes to do this on the fly and i'm sure i'd loose a lot more characters if i had to. i usually turn on rest till healed as well.
interesting idea, although to change ones personality it'd take a life changing event, ie anakin turning to darth vader (although pretty lamely done in the movie, really) its not something that one should be able to turn on and off.