The hole actually
is there, its just not so pronounced to be easily seen
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Don't hold your breath for much of a story to be added. The dev has stated that the game is primarily focused on survival and exploration with the complimented porn aspect. There will likely be more added to the dragon quest as its obviously lacking, but in general he's not much of a story teller. I'm sure he would add some story if he could get someone to do it for free tho.
The dev hates stamina regen. Don't know why exactly. Probably because he wants players to get downed and face the defeat system more often. The only legit way to gain stamina regen is with potions you can craft in the cauldron or the new sand pit with the pot (idr what its called). When you sleep you can wake up with a temporary stamina/hp regen buff, but its pretty short. There are different ranges of the buff depending on how you sleep. If you sleep in a bed you get the 'hyped' buff which is the best. I think sleeping indoors but not in a bed gives you 'well rested' buff which is something like half the hyped buff. But again its temporary and you can't just initiate it like you can the potion. You can also 'sit' and rest that way and gain a regen to stamina/hp, but you can't do anything and as soon as you get up the buff is gone. Useful when mining or cutting trees or maybe just after combat.
As for HP regen, that is dependant on your 'Deviancy' perk which you can increase in level by dominating monsters, having sex with them and having babies. It used to be a lot easier with past builds, but you can make it quite a bit easier in the current build with the Alluring Staff which is given by Isabel in one of her quests. However, even with the staff its a bitch of a grind to increase to any decent amount. Not only that, but your regen is shut down during combat anyway. So it only affects your regen outside of combat where its really not needed nearly as much. Outside of combat you can just sit down to regain your hp.