I disagree with Elfcrusher's comment "Heroes have exactly 2 hit points", on the grounds of an analogy to what I suspect is D&D that he's referring to.
In D&D Hit Points are the combination of (Endurance + Wounds). What makes D&D suck is that hit points are ALWAYS the buffer to killing someone, and you always (with normal weapon damage anyway), have to burn through them before you kill someone. Do you really think a level 10 fighter with 80 hit points can be "hit" with a longsword 8-12 times with the bladed edge of the thing (drawing blood and piercing organs) before he goes down? Even in D&D those hit points are meant to be an abastraction of some kind of combination of stamina loss, confidence loss, the will to fight, bruises, minor lacerations and/or deep piercing strikes that threaten life.
Let's not overthink this; Hit Points in D&D
are pretty much analagous to Endurance in TOR. if you really feel the need to carry the parallel further, I would suggest that the "Staggered" condition in D&D (0 hit pts) is something like having 1 wound and being wearied in TOR, and unconscious in D&D (at -1 to -9) is having 2 wounds in TOR and/or being unconscious.
Not that D&D's system of modeling damage and health is a particularly good baseline for attempting any further tweaking in TOR, but there you have it.
In TOR (or D&D), if you broke a finger while in combat (perhaps the flat of your opponent's blade hits your hand while parrying), you would not suffer a wound at all; there is absolutely nothing life-threatening about it. It would nevertheless lower your resolve to fight, hurt like hell, and it would start a series of changes in your body that would lead to lowering your chances to win. In fact, you could break all 10 fingers, and all 10 toes, and your cheekbone, jaw, collarbone, as well as a rib or two, and you would still not be wounded. All of these are examples of Endurance Loss. Other examples of endurance loss could be lifting your shield arm to take a blow on the shield so that it does not hit your torso, and getting a massive bruise/welt on your arm instead of taking a blade in the guts, as well as jumping out of the way of troll's hammer before it thuds into your head.
And in all of these examples except the last, the damage would be mitigated by having worn armor. But that is why it's called damage reduction, and not damage negation.
Damage received is totally proportional to weapons wielded, and so we must reason that the acting agent of delivering the damage is
not the effort on the part of the offended to get out of the way, but rather in the amount of kinetic force dealt by the incoming weapon. In other words, the fact that a dagger yields 3 damage and a great spear yields 9 damage should squash any claims that endurance damage has more to do with the attacked party spending endurance (ie, stamina) to avoid the blow. No; taking endurance damage means you got hit. (At least most of the time; there are certainly scenarios where it makes sense to interpret the attack's damage as being an expenditure to get out of the way, like avoiding a falling 10 ton falling rock trap or something like that).
And so, if the basic representation of "endurance damage" is physical contact and/or weapon impact (with a lesser percentage of the definition given as "burst movement which allow the attacked party to avoid the blow) that does not result in life-threatening injury, then I really don't see what is so controversial about having certain armor always give a minor mitigation factor (ie, DR) to incoming blows.