They're changing the rules so that your actual avoidance is reduced from what your gear "should" give you. This is a *good* thing. Traditionally, avoidance has been something that has gotten better and better as you get more of it, which causes problems later in the game. It means the devs can't put avoidance on gear quite as happily as they can put other things on. It means they have to pull tricks like Sunwell Radiance to make up for people who just plain can't be hit any more. :X
Same thing as armor, really: You'll notice that you get "less and less" damage reduction for each bit of armor you get. However, the way it's tuned, a given amount of armor always provides the same effective health benefit. Presumably, avoidance will be tuned to the same end: Put a certain amount of dodge rating on, and it will always benefit you the same amount no matter how much other avoidance you have on.
Basically, every bit of avoidance you get will still be good--it just won't get better the more of it you have. You'll notice that your avoidance numbers are lower than you would predict from your gear. I'm sure we'll have addons and formulas (like the EH calculator addon) that tells you the actual avoidance benefit you get from a piece of equipment by the time the game goes live.
Learn to science and stop theorycrapping in its tracks.
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