We begin with assumptions:
1) We're only talking about Class categories for the purposes of this discussion
2) Class points exist because ideally each class would have multiple viable builds / play styles
3) Diminishing returns per effective skill rank is both necessary for game balance (monsters) and won't ever go away
4) In many cases, skills that scale only with diminishing returns on combat stats (hp, damage, etc...) are underwhelming by the time the player puts 5 points in them. For a recent example, the new skill Bloody Butcher in the Bloodthirst tree is very hard to justify putting more than 2 points in!
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With that out of the way, let me present the most workable solution I have figured out to both keeping diminishing returns on numbers within a reasonable curve AND to allowing for class build options with meaningful variance!
The 1-3-5 Philosophy!
I believe that the best way to give players meaningful decisions to make about where to spend Class points is achieved by implementing the 1-3-5 system of skill break points to as many skills as we possibly can as designers. Addon makers, unless you've figured out a way to work around diminishing returns, this applies to you as well!
To illustrate my point, take the skill Death Dance. In its prior incarnation most players only ever put 1 point in it, because it did its job of hitting multiple enemies for a decent chunk of damage with that level of investment. More points made it hit harder, but the diminishing returns combined with a long cooldown meant that most players did not consider it a very competitive option for their Class points vs. something like Stunning Blow that offered increasing duration on a very powerful debuff as more points were added, in addition to its own rapidly diminishing damage increase.
In the most recent revision, game version 1.2.2, Death Dance now offers a new perk at rank 3, an additional Bleed effect applied to enemies. This is great, but only for Berserkers really out of all the classes that have access to 2H Weapon Assault. This is because of their skill Bloody Butcher, and Death Dance being the only way Berserkers can reliably make things Bleed. However, there is again very little incentive to go past 3 points other than to slightly improve your odds of one shot killing enemies you strike with the skill, because it does have a very high initial hit damage value to begin with. Because Death Dance has a long cooldown (10 turns) and the Bleed effect only lasts 5 turns, there is the additional problem introduced of Bloody Butcher's primary benefit only being applicable 50% of the time, lowering the value of Bloody Butcher further! Finally, there is a 3rd problem I noticed while actually playing a Berserker today. As you get near level 20 you begin to run into a lot of situations where you have plenty of Stamina to use a skill like Death Dance, but no option to do so because of said long cooldown. You are left bumping into monsters instead of being allowed to trade your Stamina for their quick deaths! This slows down gameplay and is generally annoying in my opinion.
What is to be done about this? Well, when I designed the new Death Dance / Bloody Butcher combo I had envisioned a new cooldown mechanic for the skill, which lowered said cooldown for every enemy you struck with Death Dance. The reason is that this incentivizes using the skill as intended, vs. large groups of monsters. This did not make it into the game, likely because the on hit damage value was kept very high. However, there are now the 3 problems I described with the skill and its relationship to Bloody Butcher as a result. What can we do next to incentivize players going past 3 points? What we can do to incentivize non-Berserkers to reach 3 points in the first place, without making the Bleed effect too powerful from a raw damage aspect? How do we lower the cooldown without making the skill itself too powerful? These are the kinds of questions we must ask as responsible game designers who care about crafting meaningful decision points for players.
An example solution, which I hope DarkGod implements in 1.2.3, follows:
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Death Dance - Active
Spin to win, doing (70, 90, 105, 115, 120, etc...) % weapon damage to all adjacent foes, and an additional (50, 70, 85, 95, 100, etc...) % weapon damage in Bleeding over 5 turns. For each opponent struck by Death Dance, the cooldown is lowered by 1 turn.
At skill rank 3, the Bleed damage is doubled, and spread out over 10 rounds instead of 5.
At skill rank 5, each opponent struck lowers the cooldown of Death Dance by 2 turns.
Cooldown 10, costs X Stamina (I'm too lazy to look up the base price)
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So, lets deconstruct these alterations. First up, the base damage was mauled! Down by 100% vs. current 5/5 points damage of 220%. This is necessary for balance, as it answers the question of "how do we lower the cooldown without making it overpowered?". Next big difference, Bleed works from the start! This is important because it lets Berserkers get the synergy with Bloody Butcher with a smaller investment, if they don't think they need to keep their targets bleeding until they die. Finally, before you even get past 1 skill point the cooldown can now be lowered by 50% just by attempting to hit 5 enemies with it before you press the button. This encourages a new play dynamic where the player can decide if they want to just dish out the damage or try to maximize the number of targets they hit, causing more in that round, and later when the skill comes back faster. All in all, a great investment for 1 point that creates fun gameplay scenarios without being too powerful!
So what do we get for 3 points now? Well, a hard to detect in practice, but significant, power boost! This favors Berserkers more than other classes because now they can keep a single target Bleeding forever as long as they don't miss, enabling Bloody Butcher to work full time. The Bleed damage is doubled, but spread out over twice the duration, so unless your enemy lives for more than 5 rounds you won't actually see the damage boost as a player. As well, Bleeding is a stacking debuff in ToME, so now everyone who uses Death Dance can stack this effect very easily, a nice benefit for Berserkers and non-Berserkers alike. Again, very good investment for 3 points!
Finally, the deal closer! What could possibly convince a savvy player that Death Dance is worth spending 5 entire Class points on? Well, as I mentioned above, around level 20 on my Berserker I kept running into scenarios where I had Stamina to burn and just wished I could use Death Dance more often, but was unable to. By lowering the CD by 2 per enemy hit, Death Dance is now able to be used repeatedly vs. a group of 5 or more enemies limited only by your Stamina. Does this break the game? I don't think so, I won those fights even without being able to end them more quickly. There will be scenarios where being limited only by Stamina and repeatedly stacking the Bleed effect will lead to winning tough group battles that you couldn't have otherwise, but also scenarios where running yourself out of Stamina then needing to use Unstoppable during that same fight will get a Berserker killed. Testing and feedback would be required to ensure this is the right decision, but remember, 5 points in a single skill is asking a LOT!
Rather, it SHOULD be asking a lot, but very often it is not as ToME currently stands. This is because not enough skills offer compelling rewards for investing 5 points in them. In fact I would go as far as to say very few actually do, including many that I have designed! During my design phase of new Berserker and Skirmisher I tried to buck the system, thinking there would be something akin to hard damage caps if I could just scale things how I wanted to. I understand now that this was the wrong approach, and both of these projects suffered from my unwillingness to accept the diminishing return system as it is and work around it. I could tell though, and you can see it in some skills that offer significant boosts at 3 and 5 points, that this was going to be the way to deal with the limitations introduced by the diminishing returns. I just did not embrace the 1-3-5 philosophy quite as hard as I should have at that time, and some skills have suffered for it as a result!
So what can I do about this problem? Let me provide another example:
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Bloody Butcher - Passive
You revel in the blood of your enemies, allowing you to ignore (10, 15, 20, 25, 30) % of their physical resistance while they are bleeding. This value scales with Strength. (at 100 Str, double the listed values, does not reduce resistance below 0%)
At skill rank 3 your lust for blood is such that the act of making an enemy bleed reduces all incoming damage by 30% for that turn. (raise your resist all cap / resists by 30% for that turn only)
At skill rank 5 you are driven into a frenzy at the sight of foe blood, gaining 15% global speed as long as an enemy is bleeding.
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Now we have a skill that both synergizes extremely well with the (newer) proposed Death Dance AND competes for points with other skills, because getting both of them to 5/5 would make you extremely good at fighting groups of monsters! Note that, because this skill primarily exists to help Berserkers (a pure physical damage class) overcome enemies with lots of physical resistance, it does not have diminishing returns. This is because the resist system operates largely with the 0-100 realm of numbers and no part of this skill deals damage, heals, or restores a resource (areas that all need diminishing returns explicitly). Like Death Dance, this is a rewarding talent to spend 1 point in for any Berserker since you will be able to ignore 20%~ of physical resist from most enemies you meet while they are bleeding once your Strength is high, and for some players that might be plenty. Going further though, at 3 points you get encouragement to take on more risky behavior in the form of strong protection when using Death Dance. Finally, the blood frenzy induced 15% global speed boost is a fine thing to have even if the player doesn't take the proposed Death Dance past 3 points!



The design challenge is far from over, however. There are plenty of other Berserker skills that lack strong justification to take to 5 points, or even 3 in some cases. To create a genuinely interesting class with multiple strong build options requires a lot of planning and careful decision making. In the examples provided, however, I have given an outline of how to make an group fight specialist Berserker by going 5/5 in both proposed skills. Other builds should be able to compete with this, builds that demand those points be placed elsewhere, to facilitate other interesting play scenarios I haven't even thought of yet


Conclusion!
My call to action for all of you who are interested in designing skills and attempting to make older skills more appealing, is to utilize the 1-3-5 philosophy thoroughly in your designs, creating within individual classes a greater range of meaningful player choices and play styles! It will require creativity at times, but I believe we can make ToME even better through improving player choice, and making their characters feel more like THEIR characters who are good at things that player specifically wants to be good at!