Other factors influence it of course such as Heraldry, Class and having the Diabolic Spellfire, but is there a gradually decreasing increase as Arcane levels go up or a proportional one. In other words is there a point at which there is no real advantage in taking it that level further?
I do know that increasing it does have an effect early on, for example, I used the Zap spell a lot and noticed that the number of times it struck increased as my Arcane skill increased. I used it a lot on the Fire Drakes (before I found Cataclysm). Early on it dealt an initial blow of 3 then followed up with a couple of 15's and 16's while near the end it was doing 15 to begin with on the Succubus's then following with four or five hits in the 50-60 range. (They were toast!)
Similarly Cataclysm - it was doing 376 hit points with one blast (is that a record??)
I hope it didn't affect the ecology of the world as if it is like a nuclear bomb, the nether world is now a total disaster area!
Great special effects though! - the sky looked like Guy Fawkes night and the 4th July rolled into one!