wow.
there has been some .... interesting viewpoints established here.
I wasnt going to reply to this, as most of the key points were done, but as the last few pages have become a smack-tha-fu, I had to chip in.
I think that fusangite was 100% in the right.
(1) The players (not characters, players) were clearly aware that they had a choice, and what the consequences were. They made that choice, and got the consequences - which in this case was sitting out what would have been a wicked combat.
(2) Consistency of application is key to a games believability. Either rules are applied as written, or they are not. Either way, stick to it. If I had been a player who had made a fighter type who wore lighter armour so I could sleep in it/don it hastily and the gm waived the armour penalty so a tank could get into combat, I'd feel gypped. Fusangite sounds like the players should know that the rules will be applied as per the book.
(3) The game is about fun - everyones, including the gm and other players. I agree that the "the GM is always right, is Gawd..etc" attitude impedes that. However the GM is (a) not always going to get it right, (b) has to look out for everyone, and (c) is not totally responsible for the players fun.
I'd like to stress this again. Whether or not the player felt that he was being done, it was his choice to sit it out and have no fun. There comes a time when you have to make your own fun.
(4) Options. The game is about options. This is not a binary decision - stay and put on all my armour or go to the combat naked.
The paladin could have put on the backup magic chain, and gone into combat with a reduced, but not totally nerfed (hate that term) AC.
The players could have come up with a wacky plan like " say, can an unseen servant assist with donning armour? how about multiple unseen servants?" etc. etc. Or something. Likely, if it wasnt something that directly contravened the rules, fusangite would have gone with it.
Or of course, they could have just put some of the armour one, and just waded in - or gone to the site of the combat, servants with the rest of the armour in tow, and evaluated the situation from there.
(5) The superman duke. Whats the problem?
-according to the rules, no problem.
-accorinding to the campaign, 12th level character goes to see duke 5 hours after talking to him about the V's, and sez "its all gone to pot, lets lay the smack down." duke flys back with sorcerer. sweet.
(6) Abuse. Everyone loses their temper sometimes. However, you need to nip this in the bud. I once backed down after a player harangued me in a campaign, and have regretted it since. You need to tell the player in private that you find it unacceptable. Its all about fun after all.