I think I've got some solid gear and stats, but I think part of my issues is with Steele running solo it's easier to feel that damage spongey-ness when it comes to differences in damage types vs CoC2 where you're in a party that can pick up the slack if the enemy is resistant to something you're doing. And to be fair, I'm running custom made gear from Dhaal to supplement the kinetic powers, so that's probably part of the issue.
1. You haven't maxed out any of your stats, especially Willpower. It's usually better to focus on two stats and max them out in this game because of the way status attacks work. For example, your powers are 30% less likely to land any status effects than if you had 70 Will (If my math is correct). If the difference between attack stat and defender stat is high enough, you can have 0 (or 100%) chance. If you want to use weapons as a Kineticist, taking Third Eye Aim and maxing Intelligence is more efficient than boosting Physique and Aim (though high Phys does protect against certain status attacks). Phys/Aim(/Int) are also factored into weapon Accuracy and damage, so you miss more often and do less damage if they're low.
2. Custom Psi Weapons have a major random component to their stats. Your level also determines their stat budget, so it's better to make them at Level 13.
3. You might be using a damage type that's widely resisted. Like I said, Freezing and Corrosive are your best bets on Phaedra and are good on Dhaal, too.
4. If that Reflexes penalty is because of Bulky Belly, you can negate it with
Thraggen Harness.
A Custom Weapon I recommend is Hammer>Lucinite>Kirkite>Lucinite. This produces a weapon with high (preferably 45%) Crit and Freeze Chance. Deep Impact makes each Crit a Stun threat that works through Shields, it can inflict Deep Freeze, doubling the next hit and Haste lets you attack 2x per round. Deep Impact works off Willpower vs Physique, though.
PS: If you have
Instinctive Psyfocus, you need 125 Libido to max it out. It's effectiveness is also based on your maximum Willpower, so installing the Sensory Dampener Implant is a net gain, despite the loss of Libido.
PPS: If you want to gripe about spreading your points to make a well-rounded character being a mistake, I'd agree. Not sure how to fix it, though, besides the stat training that's already possible.