Yes I agree that there is too much damage. I played Brytanwalda extensively and the reduced damage there significantly contribute to the game play and even change the whole fighting style. I do not suggest to lower it that much, but a good lowering of damage can improve gameplay and lower effectiveness of spamming. However, the preferred solution is not among the options in the poll!
The easiest way to change effective damage is to tweak the soak/reduction values in the module.ini file. This can increase armor across the board with tweaking of only 6 numbers instead of going item by item. It is a huge advantage as a practical solution because it keeps the relative item stats and VERY quick and easy to test - leading to quick optimization during testing (vs. editing all items in each testing iteration...).
However, increasing soak/reduce factors make strong armors even stronger and has little effect on light armors, so everything up to mail will still get one shotted and plates become titanium armor. The effectiveness of armor increase non linear: the difference between 50 and 55 is much greater than between 30 and 35. If soak/reduce values are to be increased, top armors need a small armor value reduction - note that this is not a nerf because each armor point becomes much more valuable.
The best solution: Reduction of weapon damage stats.
Some swords do well over 40 in damage and PLAENTY of 1H weapons do above 30. After some heirlooming 2H swords reach the 47-48 cut - high damage benefit even more from PS and the damage becomes INSANE. Damage stats on items need to come down 15-20% across the board This will lower 2H swords from 40ish to 32ish and 1H swords from 30ish to 24ish. It use percentage instead of flat number because all bonuses (PS, speed) are % based.
It has several advantages over messing around with armor values and factors:
1. It makes medium armors more meaningful, makes plate stronger but not impenetrable.
2. It makes PS felt more - with current damage you one-shot almost anything or two-shot at most with PS5 or PS10 with the heavy weapons.
3. It makes Heirlooms more significant without overpowering them - 2 more damage on a 32 cut sword is much more significant than 2 more on a 40cut sword.
After the damage reduction, the final touch can be done by the tweaking of armor soak/reduce in the module.ini