bushwhacker2k: Though back to an earlier question- why would this be less helpful at higher levels? (or do you just mean COMPARATIVELY less useful?)
As I said: when you level up, your HP goes up automatically - you can't increase it otherwise at this point. Why not gain a few "levels" with gold instead of actually waiting to level up to get your HP higher?
The chances that you'll be killed in one / two hits is high at lower levels (especially when lower than level 5) are high.
When you fight a bandit for example, wouldn't you like to prevail in combat and loot his corpse?
At low levels your weapon skills are low to help you out. I mean you can have them (for example, getting to Fighter level [30%] in one handed weapons), but you won't have STR recquired to equip at least decent items.
So why not balance the lack of armor / weapon skills / stats with a extra HP?
* And keep in mind that Sneaking is a great skill to take as early as possible (even from Cavalorn). You'll get a free excellent one-handed weapon from shadowbeast cave, near the lighthouse (+ purses with gold coins + scrolls) if you sneak in during day-time (shadowbeasts sleep during that time). Also you'll need Sneak to steal armor and other goodies from chests behind Matheo very early on.
Also, you
should learn alchemy (permanent potions), but Constantino won't teach you that unless you have some experience with brewing potions. That one extra leaning point from donations fits right in - you go to Ignaz, do his quest (The Experiment), and after that he'll teach you how to brew healing / mana potions - and that costs exactly 1 LP.
So your LPs will have to go to Sneak, learn to take animal skins (from Bosper) or make weapons (from Harad), make basic potions as prerequisites for later ones - and you'll have to share those with increasing your actual fighting skills + stats.