I feel that there are two gamer perspectives on this - the ones who want a pseudo-realistic experience, and ones that love the run and gun. Could this world support both?
This game feels like it sits somewhere between the two, while not really satisfying either.

Survival feels like a state machine that just hinders rather than heightens, a system where you can take twenty rounds from various directions and sometimes sustain an injury, which does little more than limit your maximum health. This is easily rectified by magic bandages that, once you start, can't stop using. Eating, drinking and otherwise "buffing" yourself is strange and mechanical, arbitrarily limited by slots.

Run and gun situations becomes a rinse-repeat affair, mowing down "mobs", or funnelling enemies and exploiting game mechanics, or just being overwhelmed due to cheap enemy tactics like spawn-ins and bullet sponge drones.

Could it be possible to cater to both tastes? Ask the user what they want at the beginning and that's that.
A few rounds will take you down in Survival, one through the leg will have you limping or crawling to safety and doing your best to fight back or disappear until the threat is gone. Your wounds heal over time and your general health will deteriorate without food and meds.
Action will be like the good ol' Wildlands, which was is a hell of a lot of fun. Guns, cars, explosions and occasionally frantic action. Health is just a factor in the fight, pull back to heal up and keep on shootin'. Or, play "properly" and go stealth.

If you can support a main game and a battle-royale, you can support this. Dunno, just throwing it out there.