How will new leech interact with martial classes?

I have a question about this line:

"

The values of each damage type in the hit are scaled down evenly to reach this limit.

Let's say I'm playing some warrior build and I do an attack that deals 800k damage of which 50% is phys and 50% is elemental (400k phys, 400k elem), then for the leech calculation I'm doing 20k phys and 20k elem, correct?
Now let's say I've upgraded my build and I'm doing 1 mil dmg with this attack of which 400k is phys and 600k is elem, for the leech calculation it's 16k phys and 24k elem, right?
So, if these statements are true and considering that for the most part leech for martial classes comes from "leech %phys (of attack) dmg as ...", am I effectively losing sustain by increasing my dmg in this case? Or am I misunderstanding something?
Or let's say I had a skill that was dealing 40k pure phys and I added Uul-Netol's to it, it will lower my leech amount, right?
I mean getting punished for increasing your dmg doesn't feel too good.