Here's an idea:

Armour doesn't seem to be accurately portrayed. What I think should be done:


Shields and Weapon-Blocking

• Block all damage
  
• Cause fatigue when blocking an attack (less fatigue at higher skill levels, but still some at level 100)
  
• Get worn out after uses (based on metal strength)

Body Armour

• Armour value set in stone. (IE whatever level you are, iron still guards 30%)
  
• Get damaged over time, until it breaks off. like, in pieces. (which you can pick up and repair, make it one item, but look like many pieces)
  
• Cause fatigue based on character level and metal weight

Has something similar been done?

I can't answer your question, but blocking point 1 is inaccurate, in that blocking a hit doesn't stop all damage - dodging it would, but a hammer can still break an arm, hits can cause strains and sprains, etc. Also, blocking points 2 and 3 are already done in vanilla, as is armour point 2 (not sure what you mean regarding visuals). Armour point 3 is probably already factored in by vanilla too for fatigue loss, it's just that vanilla's fatigue system is really broken anyway.

I do like the idea of armour values being set in stone though, I don't see how you can have skill with armour, if you put it on right that should be it AFAIK.

I think the idea is that as you increase your skill with that type of armor, you learn to compensate for the additional weight and restriction and are better able to "roll with the blows", twisting and dodging just enough that your opponent's strikes become glancing blows rather than direct hits. There is some degree of realism to this - if you've never worn plate armor before, you're going to be awfully clumsy trying to fight in it until you become acclimated.

What's always bothered me is that Light and Heavy armor are treated as completely unrelated skills in oblivion. In reality there should be some skill bleedover - the skills are virtually identical except in scale, both restrict movement and weigh you down, heavy armor simply more so than light. So if you've mastered heavy armor, you really should automatically be at least a journeyman in light armor since the skills are so similar.

It also bugs me that once you've mastered both skills, the differences between them is pretty much just cosmetic. I'd like to see a mod that emphasizes the fact that heavy armor is more restrictive than light armor. My idea for implementing this would be to give heavy armor significantly more armor rating and health than light (much more so than in vanilla), but put caps on your speed, agility, athletics, acrobatics and spell effectiveness (and optionally a spell failure chance) while your wearing it. If you've ever played dungeons and dragons, it would be similar to the max dex bonus and armor check penalties heavier armors grant to their wearers. The heavier and more protective the armor, the worse the stat/skill caps. This way slower characters who don't rely on magic would benefit more from heavy armor, giving thieves and wizards more incentive to wear light armor over heavy than just "it'll take up less encumbrance".