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The key insight is to see that the problem with ranged combat isn't a lack of DPS: the problem is poor cooperation between ranged and melee attacks. You could say that "Melee and ranged don't stack", although that's hyperbole: in reality, they stack some but give diminishing returns.
I disagree with your key insight. The problem for ranged is lack of dps. The onus in an mmo should not be on players to play a certain style in order to accommodate a type of fighting because accommodation is less efficient and less practical. The onus on the makers of a game is to make it so all forms of combat useful.
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That is, if we start with a solo melee guy and give him a helper also fighting melee, their DPS is doubled and combat success is more than doubled. If we take a solo archer and give him another archer player, then DPS and success also about double. But adding an archer to a solo melee doesn't improve the result that much: either the melee gets aggro first, and then is beat up while the archer inflicts low DPS, or the archer pulls aggro first, kiting the mob around so the melee can hardly get a hit in.
You see, if two melees are fighting a monster and trading aggro, they both can continue making attack rolls at the same rate regardless of who has aggro at the moment. If one shield-blocks until he loses aggro, then as soon as he does he can resume swinging. And if two archers a fighting a monster, they can also basically keep hitting the mob regardless of who in the room he's aggroed on (pillars occasionally interrupt it). But that doesn't work with mixed ranged and melee: the archers can still shoot wherever the monster goes, but the melees cannot necessarily catch someone who's being kited.