Oh, I forgot to mention that the new armor formula does actually have some actual diminishing returns, but it's so small that it's irrelevant in terms of Bonus Armor.
73 Bonus Armor effect on my premade Prot Paladin
73 Bonus Armor effect on premade BrM
And here you can see that the drop in effectiveness is only 0.17%. So maybe if you can get 1000 Bonus Armor on a BrM it will only be worth 998.3 Bonus Armor for a Paladin. Such diminishing returns.
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Work:
Damage reduction from armor = (Armor)/(Armor + K)
K for level 100 player = 3610
Damage taken with armor = |1-damage reduction from armor|
Bonus armor effect = Damage taken with bonus armor/damage taken without bonus armor
Full equation: |1-[(Armor + bonus)/(Armor + bonus + K)|/|1-[(Armor)/(Armor + K)]|