The passive debuff has a chance to go off when he is attacking at level 30+, it's not a guaranteed and the chance applies to every target he hits. This is done because in general player abilities do not "miss" based on reduced hit chances, so to make the ability stand out for PvP and PvE, they each get their own element that benefits one. PvE benefits greatly from a chance at 35% hit reduction, while the PvP benefits from the chance of -20 to all stats. Yes this does stack if you get lucky, but the overlap would be brief.
Enemies don't actually suffer as much as you would think from a stat reduction, it's mainly for PvP.
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