I actually like this idea.  What's the point of having bizarre tattoos all over your sovereign if the helm and armor cover them up after the first few turns? 

Yeah, it would be nice to be able to hide equipment on your Sovereign/Champions to preserve their original unique looks.

Invisible plate armors? Can't say I like the idea. Only the warrior-like Sovereigns should wear armor anyway. Sovereigns should get a special and unique look though even if they wear standard equipment from the store.

Suggestion: STR requirement for armor and weapons so the fragile more wizardly Sovereigns will not run around in Full Plates wielding Greatswords just for the bonuses.

Suggestion 2: Let warrior-sovereigns have appropriate armor and weapons from the start. In fact hand out starting equipment that matches the background pick for all.

Sovereigns who focus on magic should wear only clothing and get spells to protect themselves instead of armor that changes their look.

 I agree with the WYSIWYG camp. I've never understood players who expect to get thier "cool" look with no reguards to what the in game actual equipment is.

Also if the look does not match the armor that takes away information at a glace that players can use to judge apponents. That is the character on screen wearing plate mail should have better armor stats than the one wearing a loose fitting tunic.