Just figured I'd offer up some insight into what all's going on with health-steal gear. Not sure if it's intended, as we'd need dev confirmation but here's the results from my observations:
Health-steal gear IS working, when it's equipped. However, the moment you upgrade the gear level that contained a Heath-steal gear, it ceases to function.
How it currently functions when equipped:
Does not display heal values. You see a brief animation of light following an attack and the unit's health bar increases by x% of the damage dealt. For a few characters, more than 1 type of attack causes them to benefit from it, however, for the majority of characters, only the basic attack causes it to heal. I've never seen a single AoE skill cause it to work, for example.
Basically, health-steal gear works as x% of damage dealt (where "x" is the total health-steal value of all currently equipped gear) via basic attacks (with few single-target exceptions) gets returned to the attacker with a slight (yet noticeable) animation, without any floating text to display the quantity of the heal. Once you "bank it" by upgrading a gear level, however, it appears to be gone for good (at least until you slot another gear with it, which isn't always possible in the current meta).
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Noticed exactly the same thing.