Tbh I don't see the balancing issuess people seem to have.
Yeah, it has some strong skills, but none of them are op or can't be easily fixed. Let me get through list quick:
White Wind
Level 5 Petrify
Bad Breath
Peculiar Light
Missile
Tail Screw
Doom
(Mighty Guard and 1000 Needles)
Let's start with Mighty Guard and 1000 Needles. Mighty Guard's damage reduction is quite severe, so it can only be used with fixed dmg and is therefore only as op as 1000 Needles is. Needles on the other hand don't scale into the late game. With proper weapon and gear it would be outclassed by other aoes around the 32's dungeon and around 41's or 44's dungeon by single target attacks. Before that it does break the dungeons, but seriously would anybody complain if the early dungeon could be done quicker if you get lucky and get a blu in df? I doubt.
Lv 5 Petrify, Missile, Tail Screw and Doom are very similiar as they can end battles very quickly but have a low success rate. Make bosses immune to them and keep or even lower the low chances for thrash mobs in dungeons. Using Doom on a single target, hoping it hits and then wait the 15 sec, and thats for every single mob in a pull? You might be quicker just aoe'ing them down.
Bad Breath and Peculiar Light. Well bosses are immune to heavy and slow anyways, add a immunity to paralysis and we are fine. Again the full effect on trash mobs isn't really too strong. If a 10% dmg- for 15 sec at the cost of a gcd seems to OP you then just add a immunity period for every target hit by Bad Breath. Or just change it to a 30sec-60sec cd talent. That talent idea would be also good for Peculiar Light.
White Wind is probably the only spell i really would call OP. Give it the the added effect of doubled or even tripled mana costs in dungeons/trials/raids, that should nerf it enough so it can't be spammed in those instances. There's also the option to change White Wind to a talent like Second Wind.
All the other stuff the Blu has right now is nothing other classes can't do, too. Except for paralysis. But again, give bosses a paralysis immunity and that problem is solved.
These are just my ideas. I might have overlooked something, but as far as i can see now, there is nothing that does make the Blu op/prevent it from being adjusted for party play. The only game breaker Blu has is Mighty Guard/1000 Needles, and and since it doesn' scale, the problem solves itself. And again, is it so bad to have a random chance of a quick early dungeon run in df?
Actually I think Blu would be a really good Tank Mage with Mighty Guard/The Look and all the status inflicting spells. Just make sure he's guaranteed to gain the really essential tank skills (especially Mighty Guard and The Look) through level up and let him learn the other from monsters just like Blu does now.

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