For all that there is a lot broken in the way that damage is done, there is an odd kind of balance out there.

One of the biggest underlying problems imho (not gonna mention procs or eots - although I do think they need to be toned down) - is the 'one stat to rule them all' mechanics. When I first started playing and looking into how to improve effectiveness etc. I was REALLY surprised to find that having more stam or magicka not only gives you a bigger pool to cast before running out - but also increases damage. That didn't seem right. Then I was also surprised to find that it also increases heals/shield strength etc. too - and even more surprised to see everyone having access to both damage and healing abilities at the same time.
Then we have active defences too - roll-dodging/blocking - all based off one of these stats - which gives an odd imbalance of its own.

So we have a game where focussing on one stat give the most benefits for BOTH offence and defence. A game where health is just a 'buffer' between dps/hps. All you need is just enough of a buffer to take the burst then its an out and out dps vs hps race (obviously impacted by resistances/active defences) - which is all down to one stat. Yes, you can look at power and crit chance - but guess what? They both impact both healing and damage too!

I don't know what the solution is - but I think in any build, you should have to 'choose' between having strong healing, damage or survivability - it just seems wrong to be able to boost one stat to do all three.

If I were to try and come up with a solution, the changes would probably be too big to implement - especially in terms of itemisation - and would probably screw up balance for ages until the sets get balanced properly to fit with the new system. - but I'd suggest something like this..:

First, give active defence its own resource pool.. Perhaps call it endurance or something.. SO if you want more resources for dodge-rolling/blocking, it doesn't increase your stam(and therefore dmg) . It also makes defense more even between stam and magicka. To make it fair, dmg shields may need to be powered from this stat - or perhaps still magicka (see point 3 below on their strength).

Second, make weapon/spell damage have much, much more impact on damage/heals etc. than they do - and make stam/magicka have less impact. Also make weapon/spell damage a stat to spend points on for your character (as you currently do for health/stam/magicka. THis makes it hard to have both high damage and a massive resource pool to deal that damage.

Third - add a new stat - heal power - which affects the strength of heals and damage shields (rather than spell power which only does damage spells)

Fourth - Perhaps make recovery harder to get and based on recovering a % of the max stat. So a higher stat pool will make actual recovery higher. This will still make it worthwhile having a high magicka/stam - for sustain builds.

But as I say, it would screw up the itemisation no end.. But it would make builds with both heals/dps into hybrid builds requiring something like Pelinials to work - and it would work as the effectiveness of abilities is much more based on power rather than stam/magicka. It would also mean having to work in more heavy attacks inbetween ability use for sustain too.
Its all pie-in-the-sky stuff though, and will never happen.