Honestly, the impracticality of boob-shaped armour never occurred to me the all. I think it is an understandable mistake. RPGs aren't simulations after all. RPG designers and graphic artists can't be expected to be experts on medieval warfare.
That said, it goes to show the problem of highly-detailed graphics for complex games like RPGs: the greater the amount of graphical detail, the more likely you will get those details wrong. This was never a problem in the DOS days. I prefer the old pixel art style myself. Often it is better to leave things to the imagination... I'm not sure the RPG genre benefits from detailed 3D graphics, at least not enough to justify the extra cost of development and the need to appeal to wider audience - i.e. dumb down the game - because of those extra costs.
That's another thing. Hardcore RPGers hate seeing RPGs being dumbed down as they are now. So why wouldn't they want the armour designs to make sense? I expect my RPGs to not be dumb. RPG is a thinking man (and woman's) game. It's about setting, story, decision-making, tactics, etc. RPGers shouldn't have to turn off their brains to play RPGs. That pretty goes against what RPGs are about in the first place...