No it isn't. Counter and get 20-40% health taken off. Learn a characters bread and butter and hit-stun/launch an opponent and land 80% damage easy. How are you not seeing this? There's no reset games. This has always been an issue with the DOA series and I've always been willing to cut it slack as it's meant to be a "casual" fighter, but if they're trying to be serious about the game and get pro players to look at it the damage rate HAS to change because it's incredibly easy to get 40-80% damage from a hit-stun.
Mis-time your parry/counter? You're going to get 40-80% damage, guaranteed.
Guess I have no issue with this. Counter? 20-40%? Maybe with background damage or advanced holds. Which isn't much of the cast.
80% damage easy? Again, with environmental damage. I don't see that happening very much. 40% is easy. Make 2-3 (big) mistakes you lose the round. Not much different from most other 3D fighters.
Mistime your parry/counter? You're complaining that you're punished for a mistake.
Maybe your opinion is eschewed because online is ass and it's easy to mistime stuff.
The issue with the DoA series has always, always, always been the amount of damage counters have done. Now they do next to no damage and strikes are actually rewarding.
I don't see your point of view because I can tell from reading your various posts that we look at fighters differently.
If Nightmare hits me once with meter, I lose. If I get hit by two EWGFs in Tekken, I lose. VF? Get thrown twice by Wolf, I lose. Random examples off the top of my head.
The damage is fine. Stop putting yourself in the position to lose that much life in the first place.