One of the things that bugs me the most right now and detracts from the game is armor values. So I did some math and here it is. I basically took the most used weapons (ie. two handed dmg dealers) and contrasted them with a full set of same tier armor (exlcuding light master plate because as stands its pointless). Does not look at magic items.
Weapon Dmg Avg Dmg Armor Defense Avg Defense Penetration Avg Penetration Avg Mitigation
Staff 5 4 - Cloth 5 3 = 0 1 %75
Spear 9 7 - Leather 9 6 = 0 1 %84
Warstaff 15 11 - Light Plate 14 9 = 1 2 %82
BattleAxe 23 18 - Hvy Plate 18 12 = 5 6 %67
Battlehammer 30 23 - Master Plate 26 18 = 4 5 %78
Claymore 40 31 - Master Plate 26 18 = 14 13 %58
*does not include shields, wards, or cloaks
Analysis: Early game armor is OP. Only late game can weapons go through armor. Maxing out Armor is the way to play. By doing so you can reduce dmg on same tier to nearly zero. Every piece of armor counts. Someone missing a single piece will take around 3-4 times the dmg early game. And these are the high dmg weapons, no wonder no one uses anything else. If that wasn't enough then compare the advantage from being a single tech ahead. Wow. Oh ya and this makes champions OP because that strength bonus comes in real handy. This is one of the main reasons the AI is so easy to beat. Also makes monsters wimpy and nothing but free experience. Oh ya and dodge becomes useless in comparison. These numbers make no real sense to me.
Below are some numbers I put together. Basically I cut Armor in half and reduced the huge difference between weapon tiers a bit. To counter the increased avg dmg I would boost hp by around %50.
Weapon Dmg Avg Dmg Armor Defense Avg Defense Penetration Avg Penetration Avg Mitigation
Staff 7 5 - Cloth 3 2 = 4 3 %40
Spear 11 8 - Leather 5 3 = 6 5 %38
Warstaff 15 11 - Light Plate 7 5 = 8 6 %45
BattleAxe 19 15 - Hvy Plate 9 6 = 10 9 %40
Battlehammer 25 19 - Master Plate 13 9 = 12 10 %47
Claymore 29 22 - Master Plate 13 9 = 16 13 %41
Analysis: These values seem to work a little better. First of all weapons actually pierce full armor. Other weapons like Shortswords at 9dmg and maces at 11 become useful. Units no longer become totally obsolete after a single tech increase. Champion strength is no longer such a big deal. All these things means that there is more then a single ultra fascist way to design units, which not only increase fun factor but makes the AI much better as well.
I really hope that Armor gets a much needed face lift in 1.2 and I hope this math has shown why it needs to be done.
Edit: Updated stats by adding true averages. For info on how I got stats see my excel sheet at http://dl.dropbox.com/u/20690209/WeaponVsArmor.xlsx
Edit: Updated to bring stats in line with 1.19 ninja changes.