In fact, Elemental damage generally still seems to bethe most powerful strategy to go in PvP, because aside from the fact that immortal call or bleed/poison immunity/removal makes almost all phys builds really weak, there's no physical pierce/penetrate that exists in the game like elemental damage has. For instance in maps there can be a "monsters have 40% physical damage reduction" mod, which gives monsters effectively 67% more life, and there's no way to bypass that. Conversely, +40% monster elemental resistance is destroyed by both curses and penetration, particularly considering how easy it is to get penetration, and how high it can go.
Wrong, it's the most powerfull strategy because the retarded 1.3 pvp dmg formula (made in an era when 35% penetration was the max you can reach) makes elemental damages way stronger than physical damage anyway.
The scaling algorithms as of our most recent 1.3.0 alpha build are:
((D/ T) / 125)^0.61 * 125 * T for physical and chaos damage
((D/ T) / 290)^0.58 * 290 * T for elemental damage