I always assumed it was a 1:1 split between CE and VE on damage done. At 1:3 the PLD is totally screwed as DD's can build CE via damage quicker then the PLD can, and everyone has VE capped already.

Giving the PLD the ability to generate more CE doesn't change anything, a MNK hitting the monster will generate more CE/VE then a PLD ever could hope to. The actual hate generation formulas need changed, hate gained via damage needs to be reduced period. Otherwise it will always be a better idea to hit the monster more then to turtle up. And the defense argument fails because monster spam AoE's that kill everyone, or deal debilitating status ailments. Charmga, Deathga, or my favorite from Aello, Amnesia + Silence + Paralyze + Encumbrance + Muddle + high damage. Your sitting there naked unable to cast spells, just job abilities, put on gear nor use items. Mind as well go take a WC break or something. Chainspell Meteor spam, 5-count Doomga, or just ridiculous amounts of damage while being nigh invulnerable.