Of course, this is assuming the monsters have 0 defense and 0% protection right?
Your numbers are only comparing criticals, while mine compare overall damage. If we adjust for critical chance...
S-Type/Blue
1,334 normal hit * 70% = 934
3,335 critical hit * 30% = 1,000
Average damage = 1,934
R-Type/Red
1,246 normal hit * 70% = 872
3,439 critical hit * 30% = 1,032
Average damage = 1,904
The S-Type is still better after accounting for defense.
Of course, Defense does reduce the effectiveness of S-Type/Blue upgrades, more than R-Type/Red upgrades, but not that drastically. I did mention that in the first post...
[UB]This is a comparison on net average damage, so it'll only be accurate for 0 Defense mobs which you have maxed 30% Critical chance on. The more Defense a mob has, the better R-Type upgrades get (you don't need as much damage R). The less Critical chance you have, the better S-Type upgrades get (you need more damage for R).[/UB]
Protection doesn't matter (assuming crit chance is still maxed) since it's a percentage reduction. The stronger hit will still be the stronger hit.