One of the first ideas I had with 3E M&M was that of "Alternate Damage", or modifications that one could make to the damage power to make it more flavorful. The idea is based upon the observation that the Damage power is, in fact, a modified Affliction:
Damage is an Affliction that deals Daze < Disabled < Incapacitated (a 1st, 2nd, and 3rd tier affliction in their own rights), with a host of modifiers. Now, if all Afflictions of each tier were effectively equal (something we could argue), one could infer that one could swap out those affliction conditions for other affliction conditions. This would be a great way to modify damage attacks so different damage descriptors could play differently (rather than just having minor riders when appropriate).
Psychic damage, for instance, could be entranced < compelled < controlled, and fire damage could be impaired < disabled < incapacitated ...
This may require a closer look at affliction tiers, but it requires no closer look at them then your group really cares about right now; you can currently build afflictions and ignore damage entirely to exploit any perceived flaws in the tiers.