So I kind of get why they want it to drain your HP forever after revive, reinforcements are the only scarcity-limited resource in a match and just letting players double up on reinforcements because they have two lives would be bullshit. You're basically a zombie that's only being kept alive by stims, so it does make sense that you would have to be continuously stimmed to not die until you get actual medical treatment. But if they're going to go this route, then I think a couple changes would be needed:

1. Have the health drain penalty expire after it lasts long enough to drain four full HP bars (e.g. the full amount of stims a player can spawn with, discounting Med Kit passive). For example, if it drains 5 HP per second, then have the penalty persist for 100 seconds (or a nice round 120 for two minutes). Once that period passes, the player "stabilizes" and no longer suffers from health drain.

2. Let the revive perk reactivate at a price. Have the armor "consume" a stim every 40 seconds, and once it consumes four stims (again, the max that a freshly spawned player can carry without Med Kit) you can get automatically revived again. If you don't have any stims when the armor attempts to consume one, then it waits 40 seconds and then tries again, repeating until successful.

Now you have a teamplay incentive with this armor. On top of the Arc resistance allowing everyone to carry and use Arc weapons with less chance of teamkilling, players can Stim Pistol each other to wait out the HP drain, or carry Supply Pack and restock stims to keep each other alive and facilitate recharging the revive perk, that sort of stuff.