WAR is very overpowered currently, which is why sometimes it may seem like DRG doesn't measure up. But it does, it's an exceptional DD, from my experience the second best (arguable inside Abyssea, since Monks can do somewhat ok damage there).
Retaliation boosts a WAR's normal damage by a great amount, even with just one mob hitting them. This amount is less significant, the more haste you have, without Haste it could be up to 60% damage boost (still with only one mob). And it makes things like FC burns or skillup burns possible, when otherwise it would be very infeasible.
Personally I absolutely hate the movement speed reduction. Nothing worse than that. The moment I could toss my Dusk Gloves was one of the happiest in my FFXI career. I can definitely understand the need for a negative effect, but this has always bugged me. It's a personal thing.



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