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After mucking around and doing some calculations, I came up with a nice summary of how the RED works:
100% + {(150%*1.03) - 100%} * (100% + TDI) = Crit Damage
Where
100% is the normal damage
{(150%*1.03) - 100%} is the crit damage with the relentless earthstorm diamond (would normally be 150% - 100% or simply 50%). This would be {(200% * 1.03) - 100%) for melee damage.
(100% + TDI) is the total damage increased from talents, with TDI as the percent increase from talents (100% for ele shammies using Elemental Fury, Locks using Ruin, Moonkin using Vengeance; 50% for arcane mages using spell power; 30% for rogues using lethality; etc)
For simplicity's sake, here's a list of crit damage increase from the Relentless Earthstorm Diamond:
(Note that Ignite is not a crit modifier – it just multiplies the total damage done by 1.4. Ignite is also included in the final crit damage %)
Moonkin: 209% - 200% = 9%
Feral Druid: 216.6% - 210% = 6.6%
Marksmanship Hunter: 237.8% - 230% = 7.8%
Arcane Mage: 181.75% - 175% = 6.75%
Arcane/Frost Mage: 236.25% -225% = 11.25%
Fire Mage: 216.3% - 210% = 6.3%
Arcane/Fire mage: 254.45% - 245% = 9.45%
Lethality Rogue: 237.8% - 230% = 7.8%
Elemental Shaman: 209% - 200% = 9%
Ruin Warlock: 209% - 200% = 9%
Arms Warrior: 220% - 227.2% = 7.2%
So, I'm sure the gem becomes completely overpowered once you get some really good gear as an ele shammy. If you were shooting 2k lighting bolts at 45% crit rate (I'd assume this is tip-top gear, full tier 6 and whatnot), your average LB (including crits) would be 2900. Add in the RED and you add about 180 damage per crit, raising your average LB (still including crits) to 2981. Assuming I calculated it correctly, this would be equivalent to adding ~70 spell damage.
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