Originally Posted by MidgetMage55
There really isn't a point in stacking beyond that. There is a diminishing return involved past the cap. I wouldn't go as far as obsessively trying to eliminate any point over the cap as the overage has no negative effect.
This is an old article (from Mar. 2008) but it gives the general idea how defense and diminishing returns work. It also explains that while going over the cap provides benefits that it in essence is overkill.
Defense Cap Defined
So far as I'm aware the mechanics discussed here haven't changed to the point where the article is invalid but someone please correct me if I'm wrong.
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The "cap" has nothing to do with diminishing returns. Simply put, you will get diminishing returns from let's say, your parry ability at every level you can parry. It's true at 40, it's true at 80. Diminishing returns in this case comes from the frequency the parry ability might be used, not its level value or whatever.