It's not. That's only a reflection of the UI truncating numbers. A guy on reddit showed the detailed tests of Rez (8s base spell) and the cast time appeared to be reduced in 0.1s increments at the same ratio as a 2.5s base spell was reduced. E.g. the SS formula is probably a straight % reduction in cast time, with the game UI truncating.So instead of looking at Speed as a linear increase, you can see it as a "stairway" increase;
No. The cliff at the end of SS is because you cannot attack faster than you animate. If your animation takes 1.5 seconds, then your SS is essentially hardcapped at -1.0, whic is what, +1050?These ideas in combination are what Alistaire means when he says speed "returns with a cliff at the end".
But there seems to be a large amount of random imprecise / misinformation. Here are the facts:
1. There are two concepts. Diminishing returns and then something vaguely referred to as marginal diminishing value. Sometimes people emphasize the former by adding more words like "real DR, hard DR, formulaic DR, statistical DR". The latter is simply an economics concept of value comparison.
Formulaic diminishing returns is when the formula itself dictates that stacking a stat becomes significantly weaker. An example of this is an armor formula damage = damage / (1+armor). The damage reduction % in that formula has diminishing returns (but survivability does not, go figure).
The only real DR in this game is the value of %crit for River of blood procs. River of Blood has a %crit chance to proc every DoT tick. In a normal situation, the player has 2 or more DoTs active. All DoTs tick at the same time. Successful RoB procs on one DoT will eliminate RoB procs of the other DoTs, since you can only get RoB proc per tick. The statistical result of this is that RoB has diminishing returns from %crit. In other words, if you double your crit%, your RoB proc rate will NOT double. It will increase by an amount less than double.
Marginal diminishing value is the general result where stacking a stat becomes poorer from a value perspective. This is the basic concept of +10% crit when you have 0 base crit is worth +5% DPS. +10% crit when you have 60% base crit is worth +3.7% DPS. The more crit you stack, the less useful stacking crit is. This effect has a slow decay (each +1% decays the value by 1%).
Note: wannabe-smart people try to repeat the fact that crit rating -> crit% is linear and say it has linear returns. You know you're dealing with a pseudo-intellectual troll when they spam that every response as if it matters.
No one gives a ****. What matters is the value. Value in this case is DPS, because no one really cares what stat is giving them DPS -- they just want results. The marginal benefit in results does, in fact, diminish by stacking a single stat.
2. Spell Speed / Skill Speed has accelerating returns. Technically they're not exponential, like mathetmatically exponential. However, SS actually has accelerating (better than linear) returns. More SS makes SS more valuable. Pretty nuts.
However, the benefit of the acceleration requires a LOT of the stat to be stacked -- much more than is reasonable without killing your TP bar, or mana bar for most classes. BLMs are the only class that can meaningfully make use of stacking SS, and even for them there is some de-synergy since their UI phase has fixed ticks (mana regen ticks are not accelerated by SS, so they have to wait for the ticks regardless of how much SS they have).
For all other classes you can kiss your resource pool goodbye before you reach the SS levels where you start to really get strong DPS benefit from stacking the SS.

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