Man, the idea that this thing eats quanta to not die is a hard one for people to grasp.
But then again,
's not really big on keeping things alive so far. That this thing does is new ground for it.
@Drake-maybe you should add a section in the notes about it not dying, since this could be a common complaint.
Its not so much the "not-dying" thats hard to grasp (pheonix does that already), its the means by which this is accomplished that is new.
Attaching the cost to its HP is also an interesting and novel concept in EtG.
The tricky thing there is that there are not a lot of similar effects to compare it with in terms of balancing.
For instance, pheonix is a completely new card when it returns, it doesn't keep any stat buffs, etc. This card does.
The fact that the survival cost is equal to max hp (i'm assuming the notes meant max hp since current would be weird to do) will help with balance a lot though, since buffing its HP may actually lower its survival rate.
Given the potential double edge sword effect I think the mechanic is roughly on par with the untargetable mechanic, or maybe somewhere between that and phoenix.
Since, the

element seems to feature stat efficiencies similar to

I think aether's Immortal card makes for a good comparison / basis here.
So from cost theory: cost ~ (attack - element attack bonus) + (hp - element hp bonus)/2 + skill value
Just as a guess, I would rate

and

attack bonus at about +1

and no hp bonus (they both favor high attack creatures, but not as strongly as does

)
so for Immortal:
6 = (4 - 1) + (3 - 0)/2 + s = 3+1.5+s = 4.5+s -> skill value ~ 1.5

For this creature:
4 = (4-1) + (2 - 0)/2 +s=3+1+s=4+s -> s = 0

...
The average skill has a value of about 1
The untargetable skill is valued a bit higher than that (as is evident from comparing phase spider and immortal)
So this creature's undying ability is probably being underrated I think.