Even for glass cannons, this reduced your damage by a very small percentage, literally will be impossible to notice. It’s 2.5% reduced damage at 2000% all/any damage, which is getting reduced further the more % you have. 2.5% damage dealt compared to 4% physical damage reduction, or 3% all damage reduction (since 90% of enemies deal 75% of their damage as physical) is way better because two handed weapons are extremely slow in most of the builds, so effectively 4% physical resist grants more damage because you withstand more damage and when attacked by multiple projectiles (physical) or multiple sources of damage, the 4% might reduce incoming damage even by 2000+.
Two handed weapons do not need % damage. They need flat damage and attack speed. If you look at one handed/dual wielding builds you’ll notice they do about 40% of a two handers damage per strike, but they’re so fast that they exceed the reduced damage to 80 - 120% of a two hander. Even at 200% attack speed, two handers are slower because of their animations and the damage percentage you now lost doesn’t make any change at all. Believe it or not, but if we lost all % damage from Kraken, and got attack speed instead, people would cry two handers got a huge nerf, while it’d be a huge buff and make two handers twice as powerful, same goes for physical resist in there. % damage on two hander is not an issue at all, armor and physical resist IS a huge issue and you should look at what a change GIVES you rather than takes from you.
So, long story short, the 4% physical resist for -50% all damage is a huge buffs and allows two handers to withstand more damage, which life steal would not cover. One handers do not need the resist because they attack fast and effectively twice, applying life steal super fast and compensating defense loss, while two handers are slow enough that lifesteal sometimes, or often, can have no effect at all even if you have 20+%.