The Army also claims Dragon Skin failed penetration tests and without saying so outright, alluded it to the delamination of the glue holding the "scales" in place, due to environmental testing. Apparently there was a brouhaha over the test results and Pinnacle Armor claimed unfair testing.
The problem with that claim at this point is the Army has contracted an independent testing lab (H.P. White, as I recall) to conduct the tests for exactly that reason: to eliminate any claim of prejudgement or favoritism. H.P. White Labs has a good reputation so far.
I think the future of body armor may well be in some version of articulating small plates (as in the "scales" of the Dragon Skin). Apparently, it's just not there yet.
"The irony of the Information Age is that it has given new respectability to uninformed opinion." - John Lawton, speaking to the American Association of Broadcast Journalists in 1995