I have been using this bracer on my shaman since lvl 10 or such... the only thing that lowers is the AC (and sometimes stats)... and on weapons its the dmg that lowers... but it dosen't really hurt the stats...
I have a funny feeling in my pants that Verant is going to "enhance" this item in the near future. Remember when Barbed Ringmail first came out of Velks not long after SoV went live? A few months later, VI enhanced it and now it's decent armor.