This really needs to happen. Sky High, Sea Hawk, etc really need better armor.
Although I'm not convinced Mattel has really solved the problem. Mostly what they seem to be doing is cutting the armor around the lats/armpit (Ninjor) or using a slimmer buck (Blast Attack) or going with unique sculpted chests (BS Hordak, Squeeze, etc).
200x King Hiss is still pretty fat around the lats (makes his arms puff out but he doesn't look fat because the armor there is just a strip). Have they put out any new figures lately that have nice slim armor that covers lats? I can't think of an example.
Not sure what the issue was - maybe a problem with materials they're using not being strong enough to be made thin?