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Armour should give a minimum guaranteed reduction relative to the amount of armour you have regardless of the hit size and everything above works like at the moment
that or make armour breakable so that big hits still get the normal reduction (regardless of hit size) but lower your armour for a while so that you can tank bigger hits better but you need to be careful after the hit till your armour recovered its full reduction again.
At the moment armour feels bad because while small hits get reduced well and they basically get reduced beyond notice that doesn't feel good because there is already a shit ton of ways to make small continuous hits barrely matter and against big hits armour does basically nothing even though that should be where it shines within reason oh and ofcourse that it does jack shit against DoT is a fucking travesty
armour should provide % damage reduction to everything. As well as minimal damage flat dmg reduction to physical. Dot and elemental damage should not be affected by armour's minimal damage reduction.
This way, it would make stacking armour as viable, as well as making the downside of armour slowing down your character more reasonable as a tradeoff. Setting something like every 1k armour provides 5-7% DMG reduction could go a long way. Diminish return for armour stacking wouldn't feel as bad if we make the minimum damage reduction more effective via % DMG reduction up to a max of 70% or something.
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The only character I will ever play
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