"Also not pictured here but AC seems to affect the NPCs chances to miss as well. "
Some AC does, some doesn't. The AC you see on your character sheet is a composite number. AC from defense skill and agility affects miss. AC From gear and AC buffs affects mitigation. This of course assumes P1999 AC operates like it did on Live.
Keep in mind the numbers you post make AC look even worse when you factor in the Warrior's innate mitigation bonus.
I think it's fairly common knowledge that AC versus mob damage output is somewhat off here, particularly at low levels. It probably isn't possible to get this sort of thing spot-on perfect.
Danth
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