I see certain towns, in my case more specifically Divinity's Reach have 'Cultural Armor Merchants'. Each one of these merchants has a tier which as I understand tiers with levels. What is the significance of this armor vs. other armor that you can find? Also, why is this armor separated by race? Is it strictly appearance?
‘Cultural Armor’
guild-wars-2
Related Solutions
The official Guild Wars 2 Wiki has an article on damage (calculation).
Edit: I'll try to sum it up for you, as damage coming through depends on several factors.
The damage you deal can be raised if you score a critical hit: 1% crit dmg per trait point. Condition damage can also add to the total. +10 cond dmg per trait point.
Effective damage you do is also dependent on the level difference. Then there are the mechanics of sidekicking and scaling, the Protection boon, positioning, projectile distance, ... that are all part of the complete formula.
Update: The wiki article has since been updated, and now contains an easy to understand formula to calculate direct damage. It is
Damage done = (weapon damage) * Power * (skill-specific coefficient) / (target's Armor)
Armor only mitigates direct damage, so condition damage and falling damage is not mitigated by armor.
No! In fact, you can hide those big hulking pauldrons too, if you're so inclined.
The secret is that this option is on the character sheet itself. It was previously a right-click option, but a bit before Launch, Arena Net added a checkbox to the character display itself.
vs.
One thing to note is that, even if you turn off the armor, it will still show up on the character select screen. This was true when Guild Wars 1 launched, and was eventually adjusted, so it's likely Arena Net will do the same for Guild Wars 2 eventually.
As of the Oct 7th, 2012 patch, the character select screen respects your visibility settings.
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Best Answer
Cultural armor is indeed different for each race. The differences aren't just cosmetic, as each race's set of armor has different set bonuses.
The armor is roughly analogous to Prestige Armor from Guild Wars 1, though that armor was entirely cosmetic. Because of its higher cost, it's a way to reward players who have had the time/resources/money to acquire that much gold to afford the items.
As of this moment, because it's so early in release and the Trading Post is still disabled, it's difficult to know exactly how this armor compares, stats-wise, to the crafted Legendary sets in the game, though it is almost certainly better than the random mob drops.