Yes, the intention is to simplify the armor system, so that, at the very least, the game developers can figure out how to balance it.
My post, actually, with the huge set of text, thoughts, possiblities, etc, I made a serious mistake. Namely trying to find a solution rather than stating all the problems.
~Damage currently has Four factors. It used to have one, back when shields caused a random factor. (which was, admittedly, complex, and even setting it to a linear damage reduction, would have been complex even then, if more reasonable)
Damage, Armor, Type Multipliers, Tier Multiplier
Damage and Armor, as well as Type Modifiers, were noticed.
Tier, however, wasn't, and actively sabotages any attempt to balance via using armor.
T1 to T2, damage and armor doubles. This retains the exact balance, tier to tier, which, ideally, is carefully crafted (and recrafted via feedback) until ships are all reasonably balanced, and behave as the developers want in combat.
However, Tier 1 ships attacking Tier 2 Ships, will be significantly less than 50% as effective, or indeed 25% as effective (due to doubled health AND damage) Because Armor, additionally, if on the target, cuts off more damage than expected. The reverse is true. High Tier ships attacking armored lower tier ships, well, Might as well pretend those lower tier *Armored* ships don't have any, as it is far to low for higher magnitude damages.
~I imagine balance calculations don't really take into account the massive difference between Tier 1 and Tier 2, which is where the Armor effect seems to disappear most.
Hence, Whatever is done, needs to take this into account, and ensure that any attempted balance is not just thrown out the window any time ships of different tiers fight. After all, I seem to recall that the developers wanted lower tier ships to still be viable, and required, unlike other games where you disregard inferior units once better ones are available.
At this point, unless fighting purely with, say, cloaked ships (which never have armor IIRC) The balance will generally get thrown out the window. Especially when the AI gets higher tiers, (Every game, homeworlds, say...) so you generally need armor piercing, and armored units are ineffective (as too much cost goes to armor negated by tier advantage)
Anyhow. Either having Armor work like, say, World of Warcraft, where Attacker Tier is taken into account (Defender armor multiplied by attacker tier, or similar) or using an armor system which disregards tiers all-together (%Based, with unarmored 0%, light at 20%, moderate at 50%, and heavy at 80-95%. Or any other system with similar tier independent properties)
~Having 0% armor at Tier 1, 20% at Tier 2, and 40% at Tier 3 is a horrid idea, because ships already gain doubled and tripled health, as is. Increasing that gap is part of the current problem, and this does not help.
Note that I cannot be certain about any of this, but It seems reasonable to me, at least.
~Core turrets seem to have the same problem, outclassing normal turrets almost universally (Unless T3, somewhat), rather than leaving lesser turrets a place in the game after aquisition, but that's a different story, and thread.