please correct me if I'm wrong, but this is how I understand our current GV damage system.
Each projectile has a "damage value", and an armor "penetration value". Damage goes down with range and the thickness of armor penetrated, and the pentration value goes down with range. The larger the shell, the better it maintains its penetration over distance, and the better it maintains its damage over both distance and armor penetrated. This is due to the larger mass of the shell being able to maintain higher amounts of kinetic energy as the velocity goes down (affected by both range and armor penetrated).
Each tank has a "damage threshold" that must be reached or exceeded to damage parts of the tank, or kill it. They can have light armor and a low damage threshold, good armor and a low damage threshold, or both good armor and a high damage threshold. When the damage threshold for a certain part of the tank is reached, the part becomes damaged and no longer functions. When the damage threshold for the entire tank is reached, the tank is destroyed.
If this IS the way its modeled, then its inherently flawed. Smaller shells can do as much damage as larger shells in real life, sometimes more depending on the situation. Where a larger high velocity round might simply pass through both sides of the turret without hidding the ammunition or a crew member, a smaller shell might penetrate one side and then bounce around inside of the fighting compartment. This would give the smaller shell a much better chance to set off ammunition or wound crew members.