Technically, yes. If mobs/everything has less HP, 1000 Needles will do greater proportional damage.
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The stat squish alone is not what has caused the potencies to change. The big factor is the normalisation of the damage formula between physical damage and magical damage. Before EW, they used 2 different damage calculations, for whatever reason, now, they will use the same one.
This is why you cannot comment on potencies at the moment. The core damage calculation has changed, so 100 potency for a physical job before Endwalker is not the same as 100 potency for a physical job after Endwalker.