After some discussion in the Discord, I think it would be apt to put it here for further opinion.
Before now, Phoenix Downs were healing 1/16 of a character's total life. In the beginning of the game, this is basically trash. However, come late game, it became obvious that it was a good amount of HP compared to what using Life would be.
For such a cheap, but useful, item to remain cheap in the early game but no longer effect becoming a cheap alternative to Life in the late game, it was dropped to 1 HP, life got a boost to healing [250+0...250 (based on Magic)] (I think).
Now the thought behind just making it 1 is because it's not useful in the beginning sections of the game so why bother with anything more? It usually doesn't heal anything worthwhile as you have so little life in the beginning.
So, why not let it do something useful while leaving it competitive against Life, but ultimately costly? As follows, and remember I'm using 65 HP when I refer to Phoenix Downs.:
65 HP would be roughly enough to cover a large pool of HP in the earliest game before Edgar, helps recover you with a three person party who can throw a phoenix down followed by a dried meat and recover all or almost most of your HP. Once yo get Sabin, you now have the option to work with two dried meats instead of one, keeping up with an increased cost but sturdier recovery option (265 max with 3 consumables)
This also benefits the scenarios (pretty well actually) as sometimes 65 HP is enough to let Hell Angel smack Celes and still let Locke get a heal in. Helps in the basement as well, let's either take a hit and get a heal in.
Sabin+Shadow can get away with Phoenix Down and a Dried Meat until Cyan were you can more safely, but without Shadow for a moment you have two sturdy characters that 65 should let them take a hit. Once you have Gau, you have the safe Phoenix Down and Dried Meat to get 165 HP back, letting Gau probably stand up more often than fall down. Someone failed Standing Class.
For Kefka at Narshe, you can build two full parties, so now you can use two Dried Meats with the Phoenix Down for a good recovery, or just one Dried Meat for an decent recovery.
By the time you're heading to Zozo, you're already fairly sturdy, can get Red Bulls, so you have the option of 65 HP plus two Dried Meats, a Dried Meat and a Red Bull, or two Red Bulls to give a fair range of recovery for your team.
And then you get magic and can now have a more powerful but not so much so that 265 (Phoenix Down + 2x Dried Meat, or perhaps a Red Bull for turn efficiency) isn't also a good option for those without life. Life continues to be a good option, but at the cost of one turn and 12 MP for [250+0...250 (based on Magic)], as opposed to two turns (Phoenix Down + Dried Meat/Red Bull) for 165/265 HP, or three turns (Phoenix Down + (Dried Meat x2/Dried Meat + Red Bull/Red Bull x2)) for 265/365/465 HP. I think the turn and consumable trade off makes it comparable to Life without overshadowing the fact it only takes 12 MP and a single turn.
That is what I propose for the Phoeni Down. It'll be a huge help in the World of Balance this way, while letting Life keep its glory of being fast, big recovery.
I mean hell, you can augment it with a Dried Meat, Red Bull, or even a cure for 4 MP and get more HP with a follow up recovery. So Life still outdoes the Phoenix Down overall, but this let's be a sturdy option into the late game.