"I argue that each new tier of equipment also doesn't mitigate the damage caused by all of the Frostbolts that don't crit or the 70% of the time that a Rogue isn't critically striking me."

But it does mitigate the average damage that Frostbolts do, both by reducing crit chance and the damage crits do. The fact that some (or most) individual Frostbolts don't have their individual damage reduced isn't relevant. Average DoT damage isn't (or rather wasn't) affected. Over time, as resilience increased on new tiers of arena gear, this would increase the relative power of DoTs.

Imagine if arena gear instead had... say, Shadow Resist, and more and more of it was added with each new season. Sure, some Shadow spells wouldn't get resisted at all and would do full damage. But the average damage done by them would be reduced, and over time the increasing amounts of Shadow Resist would make warlocks and shadow priests weaker and weaker compared to other classes.

The solutions would be to either remove Shadow Resist from arena gear, add new stats that had a similar effect on non-Shadow damage sources, or change Shadow Resist to equally affect all damage types.

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