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I don't think it would be overpowered or unbalanced in any way relating to PVP, but I do think it would not be very feasible in PVE. Blizzard tends to make content with very specific gear thresholds and not many ways around those gear thresholds other than adequate progression through raid content.
Vitality is a perfect example. In it's original form, it was a straight 10% increase to health (or stam, I don't recall). It was changed to 5% stam and strength, then 5% stam 10% strength.
The reason for the change downwards would be for two possible reasons. The first, Blizzard didn't want to enforce specs for raiders. With a 10% bonus to health, most guilds would require all their Warriors to be prot, even to do Heroics. This philosophy is partly seen in that 15 points in Prot will make any Warrior a functional tank. The second is that Blizzard didn't want to increase the gap between Warriors and Paladins in mitigation/health, which is already substantial.
It's about being able to put in that next big Patchwerk, where gear is simply required. With shields absorbing magic, presumably based on Block Value, you suddenly make some encounters trivial to smart Warriors, as well as enforce yet another set of gear (shield block gear, which, while every Warrior ought to have a set in MY opinion, might not be the best thing to enforce).
One of the other important parts of magic damage is that it is pretty well universal. It's the kind of damage Blizzard tends to put in encounters to put everyone in danger, including the tanks. Loatheb, for instance, with a raid-wide shadow damage burst every 30 seconds. Specific thresholds of health on Loatheb were absolutely required and certain damage rates had to be met because people by and large couldn't mitigate that damage (some classes healed better than others). Giving tanks an ability to negate all damage types means Blizzard has less flexibility (and would likely turn to more act-or-die spells like Void Zones).
Meh. There's alot to go w/ it. I think it'd be perfectly fine for PVP. I think it wouldn't necessarily be unbalancing for PVE, but Blizzard would have to put some extra effort into encounters. I personally don't think they will, because they added Spell Reflect for the precise purpose of spell damage mitigation for encounters. Just some random thoughts!
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