First off, there are two factors are related with hit %.
One is, you'll miss or not.
Second is, much debated relation with dodge, but it's true that it's directly related with dodge.
The theory is - more hit % means the opponent will dodge less, as a high level pure bird I always desperately miss this fact that a bear should dodge way much less against me, compared to other classes but this doesn't happen as hit % got capped already, this is the main reason that dodge has taken over everything and luck factor got overpowered.
I made a thread regarding this matter months ago, techno also replied their, though she didn't mention anything about the mechanics.
http://www.spacetimestudios.com/show...-to-re-balance