I'm in agreement with making parry completely nullify damage from the hit. A parry by definition means you either stopped or deflected the blow, so continuing to take damage from it makes no sense. Doing this would require a change to raw intuition though, because it would basically make WAR have a hallowed ground for physical attacks. It's as simple as changing the parry effect to a reduced 20% physical damage taken for RI.
Parry also does need to scale better, it's like, what, 1% increase for every 100 parry rating? This is way too low. Double it at least. Maybe even triple it.