

Technically, yes. If mobs/everything has less HP, 1000 Needles will do greater proportional damage.
The stat squish alone is not what has caused the potencies to change. The big factor is the normalisation of the damage formula between physical damage and magical damage. Before EW, they used 2 different damage calculations, for whatever reason, now, they will use the same one.Stat Squish and them trying to equalize physical and magical damage. So how effective everyone's DPS is remains kind of uncertain for now.
All Physical attacks are seeing a decrease in potency, but they should in turn be getting better scaling with stats and weapon's Physical Damage.
This is why you cannot comment on potencies at the moment. The core damage calculation has changed, so 100 potency for a physical job before Endwalker is not the same as 100 potency for a physical job after Endwalker.
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