In the end, it boils down to:
knockdowns = good if you have the life lead / not so good if your opponent has the life lead
resets = good if you want to come back / not so good if your opponent needs to comeback or if a normal combo would kill.
In this game, you are almost rewarded for being knocked down (since you often have more chances to get out safely than to get hit by something). That’s why resets are good: they deny wake up options and make it harder for the opponent to escape your pressure.
Health management is also huge because it basically decides where the pressure is and who is actually taking a bigger risk on knockdown situations.
For example: say I land a combo on you and knock you down. I throw a meaty projectile in case you quickstand, but you don’t quickstand. So then I stay at max roll distance expecting you to roll but you don’t roll. The situation is now reset: we’re both at neutral again.
If I have the life lead, I took zero risk and the pressure is on you because you need to tag somehow and comeback from behind. You need to take risks. I won.
If you have the life lead, I lost my momentum and you got out of my mixup safely. You won.