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Level, not HP. Zones attempt to "match" your level when spawning, so it actually makes sense to train your Skills more and actually kill less, so you can hit and damage the mobs. BUT it is possible to enter a Zone at a lower level than the lowest spawn level for the zone, in which case you get wild cards.
Of course, leveling is also good so you're able to cast the big spells and have higher Attributes and HP. There's a balance, but i don't really pay much attention myself--i just get the cheap weapons out if i think my hitting is lagging, or practise casting if that's behind.
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