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As far as I know, and unless something's changed, BoSanct takes effect before armor mitigation. So if you have, say, 60% armor DR, you're really only getting 0.40 x 80 = 32 points of damage reduced per hit. It can be decently good for AoE situations, and especially for AoE solo grinding, but it's pretty weak otherwise.
I'm really hoping this is something the devs pick up on for the WotLK talents; aside from BoSanct's underpowered-ness, it's also pretty annoying to have both talented blessings in the same tree.
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