I thinks thats definitely unbalanced and eveb if it wasn't.... it should be nerfed anyway because that would just be a frustrating setup to go against.
It really depends on the game format. Some of that can be a similar setting to some RPG game where you pick up a Sword that grants you 150% attack power at the cost of having half your health, so you could get one shotted in harder difficulty. Long as you don't get hit yeah, but when it comes to a player vs player kind of situation, you will get hit at some point that's going to cost you.
With a dumb AI, you'd find that pretty useful as long as you don't get hit, with an intelligent AI or a consistent player with huge defense or some kind of smart offense, you'll likely find yourself dying more than proceeding despite the benefits.
Now with Camel's post, this is a character that can open people up in huge number of ways and leaves him/her safe in the long run. With the drawback of lower priority damage and no oki game. The benefit is that it's a fighting game so someone is losing health regardless and he/she is likely to score damage even if it's low.
In that kind of situation, that could still be a player vs player match regardless because the character has no oki game and low damage, so comeback becomes quite hard for the player who can open people up, once that other player lands his stuff, it becomes a whole different ball game and he has to go nuts to open him up again with being hopeful that he manages to get the health lead.
baraka from mk9, bullet from blazblue, jam from guilty gear, black canary from injustice 2, it's an archetype i find myself attracted to yet can't deny that it's kinda shit. yet at the same time if you give this archetype advantages in the areas of damage and oki, they become way too good, so i do think it's a balanced design, it's smack dab right in the middle between being too good and being too shit
it'd be like say, helena from doa, let her keep all her tools to open up players, but now every knockdown leads to nothing or resets the neutral, and now her best combos do around 50-60 dmg, is that a fair design...... ehhhhhh, kinda. because it's like helena has no trouble opening players up, the tradeoff is she just has to do it alot of times b4 she can kill her opponent