Well, the important point about Health and Armor is that they multiply together to give you the total effectiveness.
I generally think of it this way:
Total Health = (base health - direct Damage) / (1 - armor mitigation)
Direct damage is the amount of damage you will expect to take from abilities that ignore armor. Armor mitigation is the decimal value of your mitigation (AKA, 50% = .5).
Ao, as your base health starts to surprass the direct damage that can be dealt to you, armor mitigation importance becomes very important. A few examples:
Regulus fighting an Unclean Beast, both at level one.
1410 HP base health on regulus, and beast can easily do two spits for 900 total direct damage. Reg's base mitigation is 9.1%.
Total health = (1410 - 900)/(.909) = ~561
Since the health remaining after direct damage is so low, (510 hit points) even a mitigation of 50% would only net another 500 hit points... not much more than banded armor, but getting 50% mitigation requires a whole lot of work!
However, late in the game, especially against certain characters, this isn't so bad. Let's look at an Angelic fury + mark based Regulus at level 10 vs an Ooze (hp) beast also at level 10.
Beast could have 6415 Hit points (boots, chestplate,hauberk,banded,nimoths,narmoths) with a mitigation of 37.7%
Regulus' direct damage is probably going to be a full load of frag mines (1350) and a level 2 Mark of the betrayer. Beyond that, is hard to be sure, so we'll start there. Total it up to 1950.
Total health = (6415 - 1950)/(.623) = 7166
Since at this point there is a whopping 4465 hit points after direct damage, than a pure armor increase woulded actually be so bad. Let's say he drops his banded mail for an armor of Vengeance, decreasing HP to 6015, increasing mitigation to 50.1%
totalhealth = (6015 -1950)/(49.9) = 8146
This shouldn't be too surprising, that an expensive item is better than a cheaper one, but it really points out when it is okay to lose a few HP's to gain s'more armor.
Tower rook and oak are both also very good examples of a low direct damage DGs.