Balancing Critical Damage

Critical Damage is pretty overpowered, dealing 50% extra damage per hit.  Chaining this successfully can put up a pretty easy fight against almost any mob, or most of the players.  Here's what I think:

• It could be nerfed from 50% to 20%, but...
• It increases by 4% per sharpness level, maxing out at 40%.
• With the new "Penetration System" coming onto armor, it could change the amount armor's protective value is reduced, from defending 0.8% - 4% damage to 2% - 3% damage on a critical hit.  This gives the decision whether to deal that extra +20% - 40% damage or not, considering you may not reach the full damage potential when dealing with armored mobs / players.  Although not every person would keep this in mind, this would still take effect.  Because of this...
• Mobs could have an increased chance to wear armor on all difficulties.  I would go over the entire system I have in mind... but that's a topic for another post.