I saw you guys already touched on that, so I didn't bother to go over that again. What I meant to highlight is that Strength is an actual input into the max damage calculation, but the listed formula fails to dissect the actual impact of the separate numbers that, once put through the formula, form the damage you do.
There used to be a formula on the wiki that did go into great detail on the impact of strength, but I guess it either wasn't correct (even though my experiments with it on a 10 to 20 paladin with dumb amounts of +STR gear proved it to be pretty much on point) or someone removed it for whatever reason they might have.
Like I said, if you can get to STR 150-160+ and you are level 14-15 with max weapon skills, you should break the hard damage cap by 1 point. The closer to 20 you get, the lower the excess strength you need to break that cap.
When your char hits 17-18 and gets a 20-25 STR buff, he should hit for 25 once in a while. Maybe even 26.
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