The point in armor damage?
It’s meant to be a setback (you loose the stats temporarily if you keep failing), but not a punishment (no costs in repairing armour)
That’s exactly the point. It’s so you can’t going in, wiping, going in, wiping etc. Incentivises playing more carefully. It’s good for fractals ( was ) now they’re so easy but it’ll be good for raids. Also, it’s ( putting on my tinfoil hat ) a gold sink. You usually wp to use it or in difficult content, pop a repair canister which is like 20 gold in gems.