Biggest problem in combat whether it's ranged or melee is the damage vs HP. If a player takes too few hits to kill everyone becomes paranoid, interaction becomes less frequent and the game becomes stale. You don't want to go the opposite direction either though and create the opportunity for a player to become an HP bucket that never dies because then this completely ruins that feeling of risk.
However, I'd argue present status of the game is that we are somehow stuck with both of those scenarios. Botted characters are essentially buckets of HP and casual players don't stand a chance against them 1 on 1 and will also likely die in a few hits when facing such a titan. Even 600 stats vs 200 stats is a pretty big difference and not likely a fight the 200 stat player is going to win. Of course, the problem is how do you balance the amount of effort and time that goes in to building one of those characters with the difficulty in taking it down by someone with lower stats. Right now though it's more like, dude with 600+ stats can run up to any newbie and take them out with punch/chop without a need to build any IP at all while the newbie running away is probably just trying to build IP and survive. Good luck building enough IP in the first few seconds of a fight when you're already getting wrecked though.
What sucks the most is there's so much you have to be aware of and prepared for and most players simply are not ready for that moment they finally meet the bad dude in the wild. Players that have been messing around with the combat in this game for years run up to a guy and take him down in seconds and they don't stand a chance, if I get attacked and it takes me more than a few seconds to assess the situation, figure out what I'm going to do and determine an outcome I'm already dead by that point. If a character with 700hp is fighting a guy with 200hp, the guy with 700hp never becomes any "worse" in the fight regardless of how much damage they take until they hit zero and become knocked out or dead, meanwhile the guy with 200hp probably just gonna get one hit after they make a mistake.