There are arguments for both sides. A strong argument against race-specific armor is that it makes loot table balancing even more of a headache.
I remembered once suggesting elsewhere that looted armour should really be taken to an armourer or a tailor to be adjusted and de-flead before it could be used but people didn't seem keen on that idea; I guess it appealed to me as I like things like mandatory eating and sleeping but apparently most people don't.
Those ideas are satan and should be banished from games. It is pointless busywork which interferes with the actual fun parts of games.
