The across the board Cloth armor buffs are essentially a passive nerf to DH damage. THough, that is obviously countered by the plater armor nerf… which balances everything out.
That 5% will add up over the course of a match… Considering how many Blade Dances/Death Sweeps a decent DH will get off. And since BD/DS damage is boosted by Essence Break… Means it is technically a passive nerf to that as well.
I just checked in game and the tooltip clearly states the ability is chaos damage to the primary target. Only the cleave to additional targets is physical.
I then hit the target dummy and every hit from blade dance and death sweep was chaos.