1) This issue we already had in the first game, but they got even worse, because there are now even higher tiers and because the Armor system makes any kind of crossclassing like Sword mit fire damage pretty useless.
2) The worst part is probably, because the game does not really tell you, how which source gets taken into account.
3) Magic resistance is probably one part of the issue, als the fact that it is much easier to increase you physical damage, than your magical (Warfare goes for every physical class). And I would guess, staffs have in general lower raw damage than regular 2-handed. Magic in general is weaker than physical, because of other reasons as well.
4) Leveling in general feels pretty luckluster, talents are only one part of the issue, sadly. We had many huge topics about suggestions for new talents or about the improvement of current taleens.