Armor to another guy means the guy with 1d6 skill, 5" move, and 4 armor will be more likely to survive, and the guy with 1d10 skill, 7" move, 2d6 armor, and a heroic feat is less likely.
So, even from a "win the game" perspective, armor on the hero is (I would think) better.
And heroes should have an awesome costume. If the armor goes with that, yeah, give it to the hero, hands-down.
This should be in the Rulebook somewhere:
"Any problem on earth can be solved with the careful application of high explosives"
-Valkyrie (the movie)