Guide: Armor Valuation

[Zynzyn]

the level adjustments we have in place combined with the damage reduction. The inverse is also true, meaning if you are a level LOWER than the enemy they will be hitting you harder.

I was just reading this thread and found this post which does provide some clarity but I have questions. When you say that if you are a level lower then the enemy will hit harder - what exactly is harder?

Does harder mean that suppose an enemy does X amount of dmg on a player of equal level, would that enemy deal X+Y amount of damage on a player who is a level lower just because of the level difference despite the player's armor stats?

Please correct me if I'm wrong but I assume this applies to PVP as well? If so, what is the reasoning for damage dealt/reduced in PVP to be based on level modifiers AND armor stats? Why do we need level adjustments?