And I spent essence on my Templars. That doesn't make them invincible killing machines.
Also, highest-quality armor is extremely relative...and sometimes more agility is better than more armor. Especially in the case of magic.
Additionally: the best of the best of 'an entire races military', when said race is actually fairly tiny(3-5 Million?), and militaries tend to be fairly small compared with total population, especially when not actively at war. And it's not all of a single nation. And not all humans worshiped Yaos(especially the best militaries, who probably worshiped Fusil primarily for a good long while, at the very least).
But all of that is besides the point. I don't want to argue the specifics, because that's pointless. The fact is, they are not stupendously powerful. They are humans, blessed by their god, and given special equipment. That is by no means weak, but it is not strong enough to justify the way you're using them as a basis for stuff. No matter how strong you are, if you don't have a weapon to match that strength, you won't be able to fight effectively. A fist simply doesn't cut it, gauntlet or no, if you're fighting a dragon, and are still made of human flesh and bone. And besides which, no matter how enhanced, they were still Human.
Sidenote: Rare on earth, sure. Earth's got a weird distribution of elements. Why not just use titanium or tungsten carbide, though, in that case?