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there are diminishing returns on resist points to DR%, but there aren't diminishing returns on resist points to effective health...so it depends on what you are talking about.
i.e. Assuming someone has 10,000 max HP and starting off with zero resist all.
It takes 300 resist all to reach 50% against a lvl 60 mob, this would half all incoming damage, and double his effective HP. Each resist point in this increase is worth 0.166% DR, and each point of resist all was worth 33.3333 effective hitpoints. 50%/300=.1666% & (20,000-10,000)/300=33.3333
To reduce incoming damage by half again, DR needs to be increased to 75% (going from taking 50% damage to 25% damage). This would also double his effective HP again, to 40,000.
To reach 75% you need 900 resist all. Which means each resist all point is worth 0.08333% DR, and again 33.3333 effective HP. 75%/900=.083333% & (40,000-10,000)/900=33.33333
Each point of resist all reducing in value from 0.1666%/point to 0.08333%/point is diminishing returns, but effective HP will remain constant at 33.333 effective HP/point given the starting conditions.
OT: There is no cap...but there is a max achievable due to not having items with 5 million resist all on them. The cap for monks, with perfectly rolled gear is 1540 before mantra/shout (not including legendaries). With mantra and shout, that'd put the monk at 2772 resist all for a 90.23% DR against a lvl 60.
For increasing DR, the best method is to keep 10 armor for every 1 resist all. They both follow the exact same calculation except that the one for armor has an extra zero....
I'm at 1300 resists & 14,000 armor. I can face tank any mob in the game, and if I'm lucky with cyclones, I don't need to get out of desecrate anymore (they'll still kill me if I have less than 2 cyclones out zapping people & procing LoH).
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