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Its not about player damage, it's the ai soldiers who die too quickly thanks to armor underperfomingYea it needs tweaking but it's otherwise functional. I don't see a need to adjust it too drastically. If you don't like the damage ratio you can always play on an easier setting?
Anyhow, from my experience, I don't receive too much damage so I don't see the issue. Maybe you should try leading from behind.