Diamonds, and diamond armor, even God Sets, are so common that it would only mitigate the issue. I think a better... balancing act of sorts, would be some rare material you have to craft with MassiveMagic. Gives an incentive to dive into it, maybe it requires a ritual with a spell to activate. And it would need to use a somewhat uncommon mob drop. Something custom made for it, like, a theoretical "Essence Core". Ritual, plus item, plus spell to activate, gives material. Material is used to make good armor. Good armor has high stats but lowered durability, and Unbreaking cant be added to it, to prevent cheesing the system.
It would need a weakness as well, something preferably also tied to MassiveMagic to make the connection stronger. Depending on the weakness the mob drop would need to be more common to compensate. Maybe the armor doesnt take durability damage from fire related spells, but they do more direct damage. Something along those lines.
Im just spitballing theoretical stuff, this is assuming theres even a good reason to add a new tier.
I could pitch one as: Armor and weapons have little value due to their abundance. But equal footing with equipment hasnt hindered other Factions Server. Generic Cow-Run Server's end-game raid-battles were usually determined by who had the MOST of an equipment. They have easily three or more times our player count for the PVP community though, so their battles were huge and armor broke faster. On here, fights will be small scale, no more than ten people at once from what I have heard at least.