The current 40% cap is very nice, and have no complaints about it, but the 50% off all attacks is a big issue for me.
A. Gives De-buff classes too much time to cast all the de-buffs they want.
B. Gives classes that can heal an unfair advantage against classes that rely on nano pool to deal damge. The cost bases for exchanging HP is twice as high for damage casters than damage healers.
C. Devistates low consistent damage classes like MAs and Advs in PVP.
D. Forces too much reliance on crit buffs to PVP.
100% damage would be grand. The reason why docs and traders are the current reigning kings of PVP is because of crits and healing. If normal damage was restored with caps, crits would still be very useful but the shotgun wouldn't be the end-all weapon it is now.
Anyway we've done this 50% off thing for a while, it must have been intended as a quick fix to insta-kill problems, but now a more thoughtful fix is in order as PVP zones expand into other areas.