But now you just weigh the damage. Would a 5% increase to crit and direct hit give more damage on average than using a Forbidden Chakra. My head says yes (without doing calccs) which would mean Forbidden Chakra is completely useless to use and is a damage loss, just like current Tornado Kick.

That change also does not address the issue of overcapping on Chakra. So to put it bluntly, it's a change that has had no thought put into it.