[JLV]

Speaking in merely generic terms (and not intending to critique anyone's game in any way), I would think that making armor from the skin of a sentient being might be considered somewhat of a faux pas in any society as mixed in species make up as the typical "high fantasy" society is.

Plus, Dragons, being the kind of creatures they are, might collectively take a pretty dim view of the whole idea. If their senses permit them to detect the presence of someone wearing a skin of one of their kind (by scent, say), I suspect something in the nature of a total war might be declared on, at a minimum, the wearer of said skin and any companions with them or village/city that harbors them. (How would most of US feel if someone showed up wearing the skin of a human being as "armor"? Worse, what if we knew or were related to said skin's former owner?)

I bring this up, not to say this is a bad idea or wrongthink, but rather to point out some of the complications that I think a GM could legitimately apply if this kind of situation crops up...