My take on this is probably no, there are certainly some builds that won't be sustainable without blast doors and thus it shouldn't be removed.
However, yes it is certainly too weak, in the long term this could be rectified with a redesign of the hullmods but in the short term.
Bump up the Hull to 30% from 20%, Crew loss reduction to 75% from 50 and changes the OP cost to 3 for Frigates, 7 for destroyers, 10 for Cruisers and 15 for capitals. This keeps the vanilla focus of crew survival central while making it more viable as a pick due to it's lower cost than reinforced bulkheads.
Long term though to make this hullmod a desirable pick IMO it should be a competetive offer compared to bulkheads, the suggestion of adding armour is a nice idea at first glance but buffing "Brick" builds is ill advised due to them already being not only viable, but strong just underrepresented. Instead I suggest that the hullmod be redesigned as follows.
OP cost: Unchanged
Effect: Ship is almost always recoverable. Suffer only 25% of normal combat casualties. Reduce damage to hull by 35% if Frigate, 30% if Destroyer, 25% if Cruiser or Capital. Increase hull HP by 20%. If Reinforced Bulkheads is also installed then damage reduction will always be 35% regardless of hull size, however hull HP increase will cap at 50%. Additionally, after being disabled in battle the ship will come to a halt, then after a short time (10s/15s/20s/25s) "resurrect", in this state the ship will be unable to fire weapons, use shields, phase shift or use ship abilities and begins moving at full speed but loses movement speed over time, down to a minimum of half it's max speed, in this state the ship will attempt to withdraw from the battlefield, if successful the vessel will be counted as retreated and thus remain part of your fleet even if you withdraw from the battlefield.
End result:
Buffs the hullmods usefulness as an actual combat pick and also provides useful hull tanking synergy with Elite Combat Endurance. Provides incentive to pick Bulkheads on top off Blast Doors but keeps Blast Doors as a useful and attractive alternative pick at the same OP cost. Makes dedicated hull tanking a real possibility. Adds utility that makes the pick more useful in some builds and/or circumstances as individual ships with this hullmod that are disabled may withdraw from the action while still allowing full use of their hull HP pools without them always becoming a "sunk cost" to the battle. The raw hull HP of Bulkheads will still keep bulkheads as a relevant option, especially on low tech capitals that can really make use of the hull HP.