Heck, if I didn't heal all my elementals during the battle with Nessie, I wouldn'nt be typing this reply!
Actually, I first found that healing was REALLY beneficial when Rex helped me out against against some Picuses up in the WC. Good dog!
As for applying Wiz8 to life, how about I am watching LOTR and in the scene where they fight the Orcs with the cave troll I couldn't help but think "...make sure you move Gandalf to the back rank!".