It was unnecessary, and having too many damage types will lead to everyone having too many weaknesses.
Now there's only Melee, Ranged, and Arcane. In terms of damage they will be similar, but a character could be stronger against one than the others.
All Divine attacks are now Arcane.
Also, on a similar note, "deities" will all be known as "leaders" since they aren't exactly gods in the plot. Some are also mortal, so it makes more sense this way.
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No More Divine Damage In DS2
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