I don't think anyone's confused by the way it works, we get that your percentage is a tenth of the damage.
To me, it just makes it look more like an RPG than a fighting game. And if a character is tougher than mine, I'd just rather see my 300 or 30% combo inflict 270 or 27%. Just the way I'm wired, and the way MK has always been.
Also, the whole 1/10th thing goes entirely out the window if you're fighting someone who happens to have more (or less) than 1000hp. Say they have 1200 and I inflict 325 damage. Now I don't know what I've actually inflicted unless I wanna break out a calculator mid-match to find out I've taken 27% of their health. I just want to know what I'm actually doing when I'm doing it.