I know it's been discussed a lot, but let me just put another topic in there with my own thoughts;
I really like the consistency of the armour system and its interaction with crowd control. In DOS1 I never liked the randomness of the CC there, so it's a huge improvement for me reagarding that. However, there are some flaws with the armour system as-is.
With a mix of physical/magical damage, it's often useless to spend AP on hitting an enemy if it's at full magical armour and your ranger friend/character will kill it with a single arrow anyway in his turn, even though the enemy might only have a fraction of its vitality remaining. It also makes healing and lifestealing effects a lot less useful as they only start being useful the moment you are susceptible to CC. Piercing attacks are only useful if the damage type you are not primarily targeting yourself has been depleted and you still want to deal damage to it, otherwise you would have been better off just doing your primary damage type as it likely deals more damage anyway. And finally, multi-type damage attacks, like poisoned weapons and similar. More often than not the enemy is dead long before the poison effect gets anywhere close to chewing through even the lowest of magical armour.
To help with all of these issues I think one solution is to have magical and physical armour absorb 50% of the damage, the rest going straight to your vitality. In addition to that, effects which are prevented by an armour type now affect someone at 50% armour rather than 0%. Alternatively, you could have a variety of thresholds for different effects, like 75% for smaller effects like bleeding and burning, or 25% for bigger ones like Dominate Mind.
This change would make healing in general more useful, armour gain and restoration more effective to prevent CC, but you of course still take damage even with high armour. It makes multi-type damage like poisoned daggers always have an effect, even if mitigated somewhat. It also helps groups of multi-damage type characters as they all at least damage the enemies' health.
TL;DR: Physical/Magical Armour absorbs 50% damage, remaining 50% goes to vitality. Crowd Control effects are prevented until at 50% of physical/magical armour rather than 0% as it is now.