What Viridiana is saying is that higher AA damage is not giving you higher total damage.

Delay is simply how fast the autoattacks come out.

So the formula is not doing the right thing.

In the sim, delay is not a factor in the damage - whether or not that is how the weapon is balanced is sort of irrelevant. The sim fires off autoattack events every DELAY seconds, using stats and AA_DMG to figure out the damage of each autoattack. So if that is incorrect or isn't how the game does it then we need to revisit this.

The damage Dervy models for his spreadsheet normalizes AA for this.