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Precise Dagger is better for weaker crits, but more of them. This is useful for classes which have skill tripods with huge Crit Dmg multipliers (I mean +150% and such)
TL:DR
it really depends on the build itself. If you have 0% crit chance, then sacrificing some of the crit damage for a jump in crit chance is very useful. But if you have a high crit rate, then it's not that big of a deal to sacrifice some of it for a big jump in crit damage.
Loooong explanation ahead :D
Let's take the 2 sorceress' class engravings, Reflux as mentioned before and Igniter to get a better idea.
Reflux adds a permanent damage increase but removes the temporary big burst window (Arcane Rupture). This means that no matter what, your damage is more consistent over-time instead of having big burst damage in a small window. In this case, it is better to prioritize a lot of smaller hits with a high crit chance than a small amount of hits with a high crit damage (but low crit chance). Having lots of weaker crits doesn't wreak instant havoc like a burst based build like Igniter, but it's fantastic at constantly dealing solid damage to the enemy. This is the scenario where hit chance is more valuable.
As for Igniter, it makes your big burst window, ie. Arcane Rupture, super-buffed. It also makes your crit rate higher, which in turn makes crit damage more valuable. The reason is that your whole focus of the build is to get into this short burst window and output as much damage using the time that you have available.
This means that you have a limited time-frame where you want to use all your cooldowns at once and deal as much damage.
Let's imagine that you use this kind of build and have a high crit rate but low crit damage. Because you have a limited time-frame for your high damage, you unpack all your might into it and all you get is a handful of slightly buffed crits until the buff expires. That's not really that different from all the other crits you do, right?
Now imagine you are running this build but with lower crit chance, but massive crit dmg. Just to put it into perspective, we're not talking about making spells 30% stronger, but let's say 500% stronger if they crit. So you get into the burst phase (again, Arcane Rupture etc.) and pray to the Spaghetti monster that you get these sweet crits. If you do, you get a MASSIVE spike in dmg, but it has a lower probability of happening, because your crit rate is lower.
it might sound weird that you have a completely luck based build, but this is literally how the whole Soulfist class works :D
The principle of it is still hidden behind chance because crits are not guaranteed, but there is always an advantage of one over the other. Hopefully you can now better understand the balance between these two stats :)
I'm an expert at over-explaining things, sorry for the long reply :D
Let's say your skills do 1000 damage each second.
You have 10% crit rate and 500% crit damage.
In 10 seconds, you mathematically deal 9*1000 + 1*5000 = 14000 damage.
Sacrificing a small bit of crit damage for extra crit chance is definitely worth it if you go for consistent damage.
Now let's say you do 1000 damage each second with a 40% crit chance and 200% crit damage.
In 10 seconds, you mathematically deal 6*1000 + 4*2000 = 14000 damage.
Sacrificing a small bit of crit chance for extra crit damage is definitely worth it if you go for a burst based pray-to-god build.