How do you see mobs hitting so much harder? In my opinion there hitting me even less now but maybe thats just me.
What level are you fighting at? It seems that HIGH level characters got a massive buff to all their stats, but low level characters got a massive nerf. Oh, also... if you're at low levels they are hitting you for less damage, but you also have like 1/4 the HP you had pre-patch. So that hit for 40 is like 1/4th of your hp whereas pre-patch that hit for 80 was only 1/10th or less.