The issue of armor got adressed since start of Early Access and pretty much the same goes for the imbalance between physical and magical, still they made magic even weaker.

Physical damage can shred armor much more easily, because damage mainly depends on weapon and not level and also there are hardly any resistances. Physical resistances got completely removed, only a few boss like creatures still have some if I'm not mistaken.

Give you healer a shield and she can do a lot of damage with shield throw alone.

Shred down armor and put them into a doom zone, than you can easily keep them knocked down every turn with warfare skills.

HP in general are pretty pointless, armor down and enemie is dead meat in most cases. Though giving them more armor would not make the game more fun, just more tedious. Even more on Tactician, were some bosses out right can do one-turn kill even the beefiest guy in your team.

The whole game is just a mess of numbers: You with a few hundred and end with xx thousend. And every level up seems to have bigger impact on your numbers than the attributes you chose. The could auto-level attributes and it would hardly affect your playstyle anyway, because attributes are only about more damage too. You can only decide on how you want to deal damage (melee, ranged, magical, crit), not on how you want to play and attributes pretty much counterdict crossclassing now, even more if you compare it to the first game.