While this idea is obviously flawed, xenos do need some more free respawns. The reason is that some castes are legit unplayable without dying. Try runner. You can be really good at the game for what it worth, but sooner or later someone will manage to PB you, burst you, flame you, slug you, sniper you or nade you. Without respawns this caste is outright not worth playing, and I don’t think it’s healthy for the game.
I do think recycling is a good idea, because it allows xenos to somewhat sustain numbers without actually growing them, which was the main problem with old bursting system: if xenos focused on capping via screech capping, they could grow in numbers and overwhelm marines quite easily.