How does that change anything? It's still the same fundamental problem, the attacker gets doubly F'd over when attacking someone with armor. The fact that armor allows you to circumvent hit stun (until absorbing the AP limit) is good enough, it doesn't also need to completely negate the attack, that's just ridiculous.
Brawl has like pseudo-hyper armor. Like when Ike uses aether if his sword is in the air and he isn't touching it he gets no stun or knock back from any thing, he still takes damage though. Same as Squirtles side special atttack but squirtle takes no damage and can be knocked back. In Street fighter II Turbo (i think) classic ryu has an invincible Tatsumaki Senpakioku(?) If you use it in the middle of the screen, but it only works about 50% of the time.