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Maybe I'm being dense, but this armor discussion seems pretty esoteric.
1) The game is tuned on a RELATIVE basis. Meaning, the game designers have a set expected damage range each boss will deal. They tune the game on an expected level of armor when you step foot into the instance. Adding incrementally to your armor and looking at the damage reduction comparison IS relevant from that point of view.
What that damage reduction costs you is a fair point, but it's not like you're willingly making trade-offs to increase your armor relative to any other stat. In most cases, armor is a free stat derived from the item level increase. You take the T6 upgrades because they're better in so many ways, armor is just a side-benefit.
2) Armor scales with incoming damage, unlike health or any other stat except avoidance (in most encounters, stuns throw that off and stuns ARE relevant in early Sunwell). The value of increasing your damage reduction by 0.1% is much higher against a single big damage hit than it is against a smaller hit that stamina could easily absorb. It should always be a relative comparison - how much gross damage is being dealt, what are your existing stats. You can't say armor is strictly better or worse than stamina without first knowing the incoming damage amounts, a tank's existing stats and the primary sources of damage (is it magic? Physical? an elemental physical attack?)
3) As a couple people have pointed out, you really don't have a lot of options to increase your armor in game, aside from standard upgrades that you would take anyway. Ironshields should be standard issue on any meaningful boss you are tanking. Scrolls of armor can be useful if you aren't wearing the MH exalted ring. Neither of those have a material opportunity cost. I suppose you could argue that toughness is optional and you could move talent points around, but I doubt most people would do that. The only slots that you really have an option to change your armor value are your rings, trinkets, and to a lesser degree your gem slots (by socketing for agility or agility/stam).
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