Well the way I see it is that there are a couple level advantages that could occur. 1 attack and defense modifiers apply and for the most part counteract each other for those at ruffly the same level but begin causing drastic differences to players of different levels. 2 the pve idea of a scaled debuff on damage going out/taken depending on level (the pve 20% reduction per level seems high for pvp maybe 5-10% per level).
I'm pretty sure its number one because they said your gear would matter . Impact was the only thing that mattered on weapons in normal crucible as far as damage goes so the only way to make the better gear count for more (weapons wise) would be to include the attack modifier, and of course the defense modifier to counter with as you rise in level and gear.
Again, my understanding is that the armor/recov/agility has always applied to crucible.
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Well until bungie makes a proper announcement about this I'm going to have to believe that impact and defense are factored in for regular gameplay and agility/recovery/armor are factored in for IB mainly because it's the only logical explanation that doesn't say that the IB is broken. And I mean honestly the guy is -blam!-ing good he evades and has clean shots skill matters it's not who has the bigger gun you know? But his gun may be saying 20 crit damage but that's A: half of my crit damage and B: a whole clip to take out one guy.