Yes the DoT damage was decreased, but you can now have 5 separate DoTs on you at once instead of 1.
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Yes, but that just effects pve, as it takes three hits to get the dot up to its original potency. In other words, you don't get a better dot until your fourth hit. In pvp, you've won by your fourth hit anyways. If you read my post, you will notice it said that the dot is 1/3 as effective. Do the math