SkyUI will be implemented via the flash files, etc using Bethesda's UI interface... so they will NOT be affected by the bug.
As for my mod, I don't touch anyone's equipment, just attach "placeholder" sheaths and shields. :)
My personal opinion is... if you use Book Covers Skyrim then you should use this mod as well. They compliment each other nicely. Against strait vanilla could go either way but these are still very well done.
EFF has the option to make followers default, protected, or essential. Protected/Essential followers always regen heath. For some followers that can die in vanilla they do not regen health (I.e. the female warrior in the bannered mare), if you want them to regen set them protected/essential. Details on each follower can be found on UESP.