I think the change necessary, but a little excessive.
Before the change a dude like Darragh Meng was only seen as "on value with Hot Lead Flyin'", which does a disservice to him. On top of that the ability to "cheat death" by reducing casualties, and then punish your opponent for winning is a pretty broken playstyle.
With that said, I really don't like the new version at all. It basically becomes "Takin' Ya With Me on 6s" but with more restrictions. You can't use tokens, it is a headline, and Kung Fu dudes are at a huge disadvantage (they go back to printed value after being discarded).
The only card I want to try in a HLF deck is Mario Crane (Exp.1) because his ability seems pretty great with it... except harrowed dudes can't be used to trigger HLF now...
Honestly, we started referring to "New HLF" as "One Fer The Road" and treating it as a new card. Then we just house ruled HLF to end with "...the winner takes 1 casualty up to the number of dudes you discarded or aced". Still problematic, but at least now you have to actually lose a dude or 2.