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Crit does have diminishing returns. Going from 150% to 151% crit isn't the same relative upgrade as going from 120% crit to 121%. Just like going from 1000 spell damage to 1200 is not the same as going from 500 to 600. The difference, however, is not big especially when you're talking end games numbers of +damage and crit chance.
The DPS fuction (neglecting hit for a sec here) is (a*dmg+b)*(c*crit+d) as you can see both are linear functions, however the change in DPS per damage point hardly changes if you change crit by a bit and the change in DPS per crit rating point hardly changes when you change your spell damage by a bit.
Adding 1% to DPS for example (which requires at least 1 item upgrade if not 2+) from pure spell damage increases the value of your crit by 1%. That means if you needed 25 crit rating for 1% damage increase, you will now need 25*100/101=24.7524 crit rating per 1% DPS increase. Notice that it's also very close to 25*.99=25.74 as when you're close to 100%, going from 101% to 100% is almost the same as going from 100% to 99%. Using these sort of things make a lot of calculations much easier and faster. So basically if an item adds 1% dmg through crit and 1% damage through dmg it would add 1.01*1.01=1.0201 or 2.01% dmg increase. An item that only gives 2% dmg increase through spell damage would give 2% dmg increase. I afford myself to safely ignore the 0.01% dmg there becuase it's completely meaningless and only look at the linear form of the dps equasion after putting in my current stats. And as you can see the values of crit vs dmg would remain similar the closer you are in damage/crit to the one who calculated, and you will see you need to be very very far off of the person whose values were used to get significantly different values.
You can do similar for much bigger increases - even as much as 10% dmg from crit and 10% dmg from dmg which is completely impractical upgrade as it requires insane amount of gear chahge, and if you treat it as linear your error is still going to only be evaluating your DPS increase by 1% too low if you ignore the non-linear factor. With 2.5% and 2.5% with 5% total which is again multiple major upgrades your error is as low as 0.0625%
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