Which just goes to show: if you strike at your opponent with a big sharp weapon, they don't try to dodge, don't have anything to block it with, and aren't wearing anything protective... they're going to get seriously hurt, guaranteed.
And it didnt even need any special rules regarding that, just straight up modifiers
I'm on the wall myself regarding using straight CT rules with an armor matrix, or using rules where armor applies damage reduction to the attack.
Armor reducing damage sounds like it makes sense, on the surface. But in reality, armor either protects you or it doesn't. It may reduce the velocity, but if an arrow, bullet, or blade gets through the armor, does it matter if it's moving at full speed or at half speed? It's still going to penetrate your body and do damage. In fact, a slow bullet is deadlier than a fast bullet - a fast bullet will penetrate and even if it fragments, continue in a relatively straight line and leave your body on the other side. It will suffer a reduction in velocity as it enters and travels through your body, but if its going fast enough to start, it will maintain enough velocity to exit. If it is reduced in velocity by armor, it is possible that it will not have enough velocity to penetrate the other side, and may instead start to ricochet or it's pieces divert into multiple directions, causing greater injury!
A .22 round, for example, at close range can penetrate the skull but does not have enough energy to exit.
The only logical example I have though of so far where armor as damage reduction vs damage cancellation is in the form of stopping a bullet completely but causing concussive damage - but this is generally not fatal. Cracked ribs, knocked on your ass, maybe stunned/unconscious for a bit. A good example of this is taking a few 9mm shots to the chest with good (modern) body armor, or a shot form a 5.56 round or 7.62x39mm at range (to the chest while wearing the armor). It'll knock you on your ass but, after the stun wears off, you can get back up and (painfully) run to cover. On the other hand, 5.56 rounds tend to fragment on penetration and fragments do not leave the target... so if the armor doesnt stop it, it's not going to help you much.
Edit: I'm going to dig out my Phoenix Command manuals, been a while since I looked at them. I think they treat armor as all-or-nothing as well. PC was designed around real world research; in fact, if I recall correctly, one of 4th edition's major changes was that of how body armor protects against explosives, based on (at the time) new research data results.