Who said it could even be runed? (thinking about removing the ability too, keep reading) I am not trying to make it a an alternative to real mineral armor, I really do not think it should be. Just give it something more so it can actually be usable, maybe even quick to produce. Make forts take half the time, and maybe the same for TA (Remember, it will not have close to the same AC as mineral amour, so maybe a lowering of crit will balance). Leather is natural, could be easier to enchant.

And about armor degrading I have an idea for that. Obviously scale the price properly, that will be a hit/miss till it gets right. But make sure you have a "repair all button" the tinker can perform on you. Make it take barely next to no time at all, no need to remove you armor piece by piece all you do is just stand there. Armor degrading would add an other layer to the economy and be a good way to put money back into the mud since shopkeepers / shops blow.