To argue devil's advocate here and say that balancing dmg off the UW is required or even needed is a bit of a stretch (in my opinion).  The goal of an item with increased dmg is the benefit of shorter runs in higher tiered content (as anything you one shot with epic or UW doesn't count).  Lets say you balance a tier around people having UW, you then end up with people without it dropping off due to ridic clear times, or forced to roll additional toons (or get the UW, which we don't want forced).  That doesn't sound like a great option at all.

Other scenario and more logical one is you balance mob hp around a typical box that does Not have it.  In this situation, the UW just adds the benefit of reducing hardware resources/toons with added dps.  A lot of people got it originally for that extra hp as it was relatively needed for T8+.  It seems like the majority of players are all on board with that HP issue getting handled.  DPS just doesn't have that same across the board easy to see logic for any change.  You can argue that you want to change it to make it more in line with Epic's but what would the point be if you are going to stick to NOT balancing content around UW?  These took a Long time to get and you acknowledge this by starting this thread stating that their will be MASSIVE QQ and then stating you were surprised it hasn't been as bad as it was anticipated.

If reducing UW damage has anything to do with server or coding constraints needing less #'s in general, there are other options.  You could reduce T7 or T8 mob hp by as an example, 25%, and then the UW white damage by some other equiv % to keep the overall dps advantage from having the item, consistent, yet achieving a lower value total which can move into further content.  This brings the Epics you are making closer to the UW while still giving the UW an advantage (which it Should have). I'm indifferent to the augs, do whatever, tho I will warn that adding custom UW only augs may help to further people into getting a UW and have the potential to open up new problems down the road.  Allowing current augs in there could work, and may help balance a white damage reduction.

Having reread my post, I want to at least throw out there that iv been a big supporter of what you do for this server and this is just me throwing my 2 cents in this delicate issue, as you requested.  Not meant to be read as aggressive. 

Assuming this allows you to scale back some mob dmg from the top tiers, and the aug slot allows some additional DPS.  I am ok with the above hateborne changes for the good of the server.  With that being said, I have a UW IX, not a XI.  I can't speak for other people, but this is the thread to be heard in.

My views are very much in line with Dim, I couldn't have said it better. 

HP = No

DPS = Yes

Fix server + Keep some value of UW.

You have stated that the goal is to phase out future UW's and reduce the gap?  Several of the later tier zones Are balanced around the UW currently, so I believe this should be included in this delicate issue.

An easy solution I see would be to nerf UW Hp and then balance mob damage in T7 or T8 and up. You can additionally, keep UW DPS as is and/or add in augs/clicks.

This accomplishes several things.  You get your gap closer by adjusting UW HP and mob damage at higher tiers.  You dissuade people further from a mandatory UW situation by reducing this massive HP buffer that some people sought after it for and would continue to do so.  You keep the nice damage bonus (and remember not to balance content around it, ever again) which still gives it a use and a goal that people with all that extra time (and or money) will still work on it for.  The amount of DPS the UW provides can always be replaced by additional fully aug'd toons and usually with less time/effort.

Was T8 epic's missed in that list?

GC also appears to be dropping Burned out lightstones often.  4 kills since change has dropped 1 BLS, 2 BLS, 1 GLS, and 1 BLS.  Have not seen any SLS.

^

It evens out to be as if you had 3 NS I believe, not sure on that.  It goes back to normal after the IX when you go to X.  You will Want that extra dps in T8 anyway.

How are T8+ mages doing with epic/new pet stuff/ornate and a high end spell necklace?  good?  still need work?  Would love to take him off the bench (been on it since T6)

The secret monies farming has ended. 

Assuming equal gear/aug for the tier, how does a druid compare dps wise to other classes?

^  What Keeze said is good and could do T9 with proper items.  You could also sub that last slot for several classes including enchanter/druid/another ninja aug dps.  Druid might provide a bit more future proof than a wizzie imo.  Otherwise, very solid group.

Does this include plane of dragons and plane of gods having trash drop ess?

Unless I missed a post, Hunter stated the UW augs would be AA based turn in

Am on board with this.  I believe I recall you mentioning allowing people with UW's to get a free UW aug or something of the sort once you create them.  Might go a long way towards easing into this nerf.  A few tiers from now, should be relatively closer to UW being OPTIONAL, as long as the mob damage gets reduced as you say.