Penance/Redemption (Paladin tree) + fire/ignite?

I’m running a fire build for my Paladin with Warpath and Lunge both dealing fire damage instead of physical. The tooltips for the skill nodes are pretty clear on the fact that they’re converting bleed to ignite, but what does this mean for the passives Penance and Redemption in the Paladin passive tree?

Penance
“Your melee and throwing attacks have a chance to cause enemies to bleed, but you have a chance to bleed when an enemy hits you with a melee attack.”

Redemption
“Bleed you inflict penetrates physical resistance, and you have a chance to be granted increased damage if you have received a stack of bleeding from Penance recently (last 4 seconds).”

I’ve tried putting a point in Penance, but from what I can tell, enemies never start bleeding. I thought that maybe they were being ignited instead due to the way my skills are set up, but I myself never seem to get neither the bleeding debuff nor an ignite one, making it seem like this isn’t working the way I was hoping.

Basically, is the fact that I specced into fire/ignite rendering these two passives useless?

UPDATE:

Must’ve been a bug, because now when I logged back on, I was actually getting a bleed debuff from being hit. Enemies still aren’t getting a bleed debuff though, so it looks like the offensive bleed gets converted to ignite by my skills while the debuff on myself stays as normal bleed.
I have no idea what effects this will have on Redemption once I can put points into that, but I’m guessing there are three scenarios here:

  1. The physical penetration stays as physical penetration.
  2. The physical penetration is converted to fire penetration.
  3. The penetration is rendered useless.

Time will have to tell what happens.

Yeah, conversion nodes generally say if they convert ailments.

Penetration is not ailment chance so does not get converted, nor does ailment duration. The damage buff would still happen though.