Agreed with Darxim on this one. In my current party there is only one character with 1h+shield (playing on classic mode, to add weapon variety), but I remember one of my longest playthroughs when the whole party were the bouncing shields...
Yup. I am using mostly physical damage on all my party members. I am not saying focusing on magical damage is bad per se, but you need a lot more involvement to make it shine.