Armor and shield for offense?

So I took off all my gear and took on monsters around my level. All that happened was the strength of my attack decreased, but only by about 25 percent. As for the attacking monsters, their attacks remained constant. The only difference was the rate of critical hits. Is this a mistake because there should be no way that armor does not increase defense and that monsters can do the same damage to a peasant with cloth garments.
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