Sounds like it... I don't think I'll be smashing anyone for 7k anymore unless they're in PvE gear.
I think smash is going to get nerfed into the ground with these changes coupled with the class changes that were posted in another thread. (Not complaining... smash is a boring spec to play... unfortunately it would be nice if it remains viable at least.... I doubt it.)
Seems like it's just going to give everyone the same damage mitigation more than anything and the only real advantage is going to be damage output.