Your weapon is also "lacking," try a Sandos Claw. It's level 70 but has the highest damage output until the lvl 85+ ones.
what?... He's using a lvl 90 weapon which is higher DPS then the lvl 80 sandos claw :p And gives crit which he is in desperate need of.
I'd say aim for about 140k patk, 6500 crit, and +20 rings, and your damage will raise significantly.
Without knowing exactly what cooldowns you used for 1.2m dps in pillars its hard to say whether its a rotation error or just gear. But from the look of it it seems its simply outdated gear, and that you are playing the r/m correctly ^.^ You should be able to get 140k quite easily statting with all shell stats 3/3 or 4/2 (dex/pa and str/pa)
And get that crit up!!
(Also with the new cap coming, brings a new crafted dagger, keeping a weapon up to date is the biggest factor in keeping good damage)