I agree but it's a constrain from the maximum 160 armour that vanilla has regarding AR and the 100 minimum to mitigate lethality, as such it cannot be changed and the differences are indeed smaller. In the previous armour coverage mod the differences were much greater but it messed AR.

They still perform bad and remember the cap is at 0 so the armour wont fully protect them.

I would have given them no armour and as such they will have the 50 minimum armour, but the game gives them armour.

Sadly I haven't yet thought of a way to overcome this problem.

My problem isnt as much that they have some armor rather than that their "armor" is actually comperable to a real heavy armor. As much as I like the other changes, this mod makes heavy armor not a thing. The base armor makes base damage useless against heavy armor, which isnt good neither, but this isnt a good solution.
I´d personally just keep the cap at O as you did, double the armor and double the damage. That would bring the best balance I believe.
The mod is yours, though. I am not in a position to command you on how to make your mod work

you're correct, managed to reinstate high armour values instead of the standardization, overcoming the AR skewness.