The damage nerf means jackshit, and that’s because the loot system this game has.
There’s no point in having large amounts of DPS considering the Soulbound Threshold is really insignificant on many bosses, sure, it helps to kill that particular boss faster, but it doesn’t help on the overall loot at the end, not only because of RNG, but because nothing else you do during the battle (ignore the loot potions), like, healing your allies, buffing them, inflicting large amounts of damage on the boss, increases your chances at obtaining better loot.
Seriously, the only thing that you gain from a 8/8 character is more survivality, it’s great on a permadeath game, but it really doesn’t change anything on the loot situation because it’s out of your control, a 0/8 can get a White Bag while you will get a mark and a potion.
Just to emphasize on how ridiculous this loot system is, sure, it would be perfectly normal on a non-permadeath MMORPG game, where when your character dies, you’ll go back to a safe haven (in our case, Nexus), perhaps with some penalties on your stats and levels, or even no penalties at all. But in a permadeath game like is RotMG, that particular item you have grinded so hard for could be gone in mere seconds if you character dies, poof, just like that.