Well, let's be careful about that. You still haven't entirely solved the issue of 'either you're in cover when taking Real Gunfire and therefore Completely Immune To Damage or Dead In The Street'. While this means that over time players become vulnerable to some attacks, this only really applies outside of being hunkered down. An M41A kills you in either state, just faster with armor degradation....
I might add an element to the ARMOR aspect of the rules on my table. Let's take the M3 personal armor with its Armor level 2 as an example. As Rorsach said, when you take damage with an attack, the damage is always (and forever) reduced by the armor level (the new rule for ARMOR). The effectiveness of handguns and even pulse rifles is reduced. This is very strong, perhaps even too strong. I'm going to introduce an attrition system (not as drastic as a supply roll), but I'll count a maximum number of damage points taken (to that gear) and reduce the armor's effectiveness by minus 1 armor level (or more) in a game if I deem it necessary.
Arthur.
At the risk of self-aggrandizement... I think the system was too variable in first edition with 'must roll successes for armor points', but now it's become too static. if there's significant desire for streamlined but "immersive" armor protection the ideal is probably to add small variance, abstracting impact angles, coverage, and protection class zones.
But this depends on if you want that over just giving players extra resilience in combat which isn't wholy dependent on HP.