It... did? The only other large change I noticed was his Renka follow up damage was lowered, which is mitigated largely by the new kishu 6C combos, and Hotaru isn't broken stupid anymore.
So it's fair to argue his mid screen damage was reduced largely, but his corner damage is similar and more efficient concerning meter spent. Also, Tsubaki anywhere is massive corner push now, often confirming a corner combo even mid screen.
In a game where most (Non overpowered) characters have lower end mid screen damage, doesn't that just seem normal? Also, his hotaru can still be combo'd mid screen in many cases, in a reversal context.
EDIT: 3C being techable is a big nerf too.