Jd Smith1
Hero
I remember reading about "Armor as Damage Reduction" a while ago. Let me see if I can find the link.
EDIT: Here's the link. It's not my cup of tea, but it might help you find some useful info and ideas.
Reading that thread I saw an interesting idea: add the difference between the needed 'to-hit' and the actual roll as extra damage. Strength and Dex bonuses are just 'to-hit' only.