Well it effectively lessen your survivability you are going rather far here.
First, you pointed something important : your bleed can be cleased, which mean 0 damage.
2nd - broken beyond repair for PvE? Seriously? Damage hasn't been touched.
3rd- burn/bleed are elemental/internal...they DO ignore armor.
I'll agree the nerf is slightly unwarranted, but don't go overboard either.
To your points
2nd- Damage output is lower in exchange for heals received. Making keeping me alive less taxing on my healers. If I'm going to do less damage and not receive the compensatory heals, I'd be more useful in Combat Spec for damage output. (not saying you cannot play it, just that it is not as viable).
3rd- I noticed in parses that they were considered physical attacks, I for one always contended that they were elemental damage (tooltips) and recently was told that I was wrong because they can be cleansed as a physical debuff. I will concede I may be wrong in regards to mitigation.
Edit: Checking Parse Log; yes they do apply elemental damage, but can be cleansed by any class as they are not considered a force attack, yet do not apply during resilience.