Huh, you are correct. Vlad no longer heals from damage dealt.
I still think it's a bad idea for fiddle (and Vlad as well, honestly) to just have a tank battery on hand. Especially Fiddle, as his chanelled drain would be abusive against tanks while making him unable to actually fight squishies (unless it was overtuned). Currently, when fighting tanks his drain is weakened, but at the same time tanks don't deal all that much damage and fighting squishies makes him heal faster. So, the only bad choice for Fiddle is to drain a tank when a carry is hitting him (and honestly, that should be punished - that's what tanks are for).
A mage mid who build just a Banshee veil reduces heavily fiddlestick healing while still blowing up fiddlestick Health in one combo.
I mean it's quite an Okay-ish counter, but it feels clunky when without cancelling drain and just trading blow you get outperformed cause you heal like 50 health second.
Well, that's what defensive stats are supposed to do. You can always build Banshee yourself and then you will outtrade them.
Anyway, I agree that Fiddle is clunky and needs some changes - but at the same time, I don't think that's the change he needs (I'd probably change his E. Dunno if it's just me, but I really hate using that ability - feels very unreliable).