Whenever I am out shopping, it is always weird to see magical leather armor costing so much more than mundane armor that offers better protection. Sure, the magical leather wouldn't come with a steep armor check penalty and wouldn't be as heavy, but these considerations seem very slight compared to that of dying all the time because of inadequate protection. In the interest of streamlining, I got rid of some mundane armors that seemed mechanically redundant, but otherwise mundane armor in Dungeon-Town has a progression of AC/max DEX bonus very similar to D&D's. But I'm changing magic armor so that any +1 for any piece also comes with two additional perks -- +5 HP and +5% resistance to different damage types. These advantages are small enough not to break the game (plus, creatures will have these or comparable advantages, too) but still make magical armor more powerful than mundane armor. Someone wearing +1 Leather Armor has a reason to wear it instead of mundane Studded Leather.
Tomorrow I am going to switch gears and talk fluff. Specifically, discordium, which is Dungeon-Town's version of mana. Kind of. Also in the works for some time within the next week -- "Combat Music for a Game."