I think the Veteran's Armor change was an over-reaction. It needed to be modified for those GMs who can't say "No," but making it work lie the staff that swaps powers (i.e. limiting it to powers of its level or lower) would remove the worst abuses and still make it flavorful and a viable choice. The new version is unlikely to be sought after by many PCs, as its use is limited and there are better armors out there.