I think the subject of potion spam goes intrinsically hand in hand with dungeon balance, and both need to be adjusted a great deal.
I understand the need for red healing potions, as they work here instead of the cleric series of healing spells you can find on other servers. However, those clerics have a firm limit on how many cure light or moderates they can cast before resting again, and there is NO limit to the amount of potions you can ingest.
Instead, you see characters drinking a hundred red potions and then RPing throwing up after each encounter (And kudos to those I've seen do this), because that is exactly what would happen. In no way at all would that ever be humanly possible. >.> And even if we ignore realism for this, it seems bad mechanics.
I think, if anything, the reds should be tied hand in hand with your accumulated damage ceiling, greens should remove the entirety of your accumulated damage as if you had rested (or at least, more than they do now), and both should be capped at a certain amount allowed before rest, if possible. Sort of like the toxicity of the Witcher games.
For example, Grayson takes enough damage over the course of a dungeon that he only naturally heals to 100 HP out of his overall 130. Drinking reds while in or out of combat will only heal him up to that 100, not past his cumulative damage ceiling to the initial 130. To achieve 130 again, he'd have to drink a green, or find somewhere to rest. But he can only drink one green per rest, therefore if his health cap is lowered again, he is forced to find somewhere to rest in order to be able to recover again.
It would limit potion spam because spamming would only serve to heal you up to your cumulative cap, it would keep players from exploiting greens and ignoring rest entirely, and it would emphasize that fact that dungeons are dangerous and exhausting undertakings, forcing characters to rest in between them at our beautifully now decorated inn rooms. 
As to dungeon balance..... dungeons here are hard across the board on a level I've not seen on any other server. Of them all, deaders is probably the most balanced, but it still suffers from a few flaws.
I've noticed the more varied and "elite" the creature is, the far higher it's health, stats and DC's are. I play a knockdown build, not a tank, and I'm able to get a knockdown off on an unarmored "light" skeleton every time, but I've not once knocked down one that's wearing anything that resembles armor...... I see a DR of 15 vs a DC of 20+ every time.
I've heard of similar things with cultists, from Nippon..... that they have a very high difficulty check to knockdown, and he's..... maybe once been able to pull it off?
The cultists are another beast entirely. Every single one of them has fire weapons (some which we can't even get yet), and the ones with whips swing that thing around until it's applied to your entire party. Once fire damage is applied, even with fire resistance it's a problem because it's constantly being Reapplied. You burn until your entire party goes down, leaving just Bruce and Ziska chugging a hundred potions each until they survive the encounter and resurrect everyone.
Other times, we've our main tank characters swinging away at robe-covered priests for 2-10 damage a hit, and being hit back (while in full plate, mind), for 20+, and being crit for 50, after DR has been applied.
I've described going to the Cultists as a "I want to bang my head on the wall" experience in IRC and had it echoed back to me.
Someone in IRC told me that they were told that the NPC's stats were significantly padded to compensate for AI, because we are capable of choke-pointing spawns and incendiary grenading them to death. I very much hope this isn't so. In no way is stat-padding ever a good way to compensate for poor AI..... EVERY game has poor AI, honestly, and chokepointing in a doorway + fireballing (In the case of base NwN), or applying heavy suppressive fire / grenading / throwing AoE abilities (generally every game out there) has been and always will be a tactic that carries teams forward to victory.
Also, when every encounter in the dungeon goes like this, and then the boss goes down much easier..... they start to feel less like a boss, and more like an encounter, whereas every normal encounter feels more like a boss. >.> The lines are blurred a bit, except for the loot at the end.
I'm not sure how it could be done entirely myself, but if the dungeons encounters could be made difficult without falling back on the artificial difficulty of padding individual mobs stats so they take forever to down..... it would be absolutely amazing. The first encounter with the fire-wielding cultists is by far more harrowing and difficult an experience than the boss of the dungeon ever has been, to me.
I feel if potions are fixed, and spawn difficulty is tuned back, but perhaps spawn density is tuned up to counter, dungeons might be more enjoyable as a whole overall?
- Disclaimer, every time I've been in a dungeon has been with incredibaly mixed parties. It's hard to keep track of levels here, but I know that Axel, Ziska, Bruce and Em all represent the higher end of the spectrum here, and Grayson is somewhere in the medium / lowish end, and this has all been experienced in a party they were part of, so spawns were noticeably more difficult. I've never attempted to enter the Cultist dungeon solo to test spawns 1 on 1 or such (this seems suicidal.) Thusly, the numbers may be off as this is the viewpoint of a lower level attempting higher level content than he is.
Just wanted to convey the feeling the current higher tier dungeons leave me, and others I've spoken to, with. Going through the cemetery / crypt without too much difficulty, but still seeing damage accumulate across characters and knowing if we rush and trip too many spawns, or mess up to badly, or take a higher tier version of the diver too lightly? It feels perfect in risk to reward ratio, like we know what we're doing and can expect and how to handle it.
Going to the cultists? Amounts to an initial feeling of dread, an hour to an hour and a half of struggle against what feels like artificial, stat padded difficulty (how are their human npcs so much stronger than us? They're all like Thor in comparison), to a feeling of relief when we come to the snake boss because the fight is generally far more relaxed and easier (only done T2, so, may be harder going up), to a bit of anticipation as we look in the loot chest and cross our fingers for something more useful than sellable, to a feeling of intense exhaustion and relief as we make our way out with a few skills increased by 1 and 1000+ in sellable loot.
The reward feels fine, but the difficulty.... is a griiiiiiiiiiiind currently.
I don't mean to come off discouraging sounding. I love the dungeons, the flavor, the mechanics. I just think the difficulty could be balanced back a few steps in some of them, is all. If anyone has tested this and found proof to the otherwise, I'm all for hearing it and changing my mind.
And, sorry to hijack the thread with this, but the two tie in hand in hand. If potions are fixed or limited in any way before dungeon difficulty is addressed, then dungeons will be WAY too hard. If dungeons are re-balanced before potions are addressed, then potion spam would let every encounter be too easy. :/
-Edit- I keep coming back to this to edit what I've written. I did not mean for it to be as long as it was, or come off sounding as much as a rant as it does. I tend not to post suggestions or opinions right as I come up with them, instead observing over a period of time and then putting it up as one big presented bundle. >.> So I am sorry if any of that comes out wrong or whiney, just presenting a view that has accumulated over a length of time so as to have become long. <.<
