I think Guld Milla was chiefly responsible for Gu/Hu being overpowered towards the end of ep2. Being able to put out consistent damage without needing to dodge made it pretty ridiculous, and it made other TMGs obsolete for the most part. I think this was the main aspect of gunner that needed to be balanced for ep3.
So then comes the question: How much is enough? I currently recover about 100 hp per body shot of elder rebellion, so I recover more than 1000 HP per use of ER, not including potential headshots or AoE damage from the last few bursts. I'm honestly not sure how much it should be tweaked to balance it out. Even at 50% it would be significant enough to tank bosses with assuming Messiah gets a respectable buff.
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