What I would propose is that it would lower your total magicka to sustain a flesh spell
I like this, a lot. Lowers your total magicka and stays on until you cast it again. If your total mana drops below 0, your armor effect wear off to keep your mana positive. If you swap gear, your armor effect wears off.
The amount your magicka lowers is the mana cost of the spell. Stability reduces the mana cost of all alteration spells by 25% that stacks with your school reductions. Dual casting gives 2.2x armor for x2.6 the reduction in your max magicka (so with mage armor perks you could hit the armor cap).
Keep dragonhide as it is or rework dragonhide to something else (spell reflect?). Oh my god... I would love if somehow someone could make a mod to work this way. That would be AMAZING.