But the armor you equip isn't health. It's defense. A measure of how protected your health is. Not extra health. Most of the complaints about the Iron Banner seem aimed at people were expecting to be invincible and deal extra damage like high level pve enemies vs low level guardians.
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Oh but also I completely agree everyone is mad that they aren't gods among...Well gods, because let's face it everyone has pretty similar weapons and armour. But my theory is that in the regular crucible the stats (armor, recovery, and agility) are all equal for everyone whether it be higher or lower than what your stats actually are, but in IB your stats are your stats I (as a Hunter am naturally faster than titans and warlocks).
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Armour (equiped pieces) armor (the stat like agility and recovery) armour is defense, exactly like you said, it's extra protection but armor is actually health so titan basic stats are more pro armor just like hunters are pro agility and warlocks pro recovery.