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No the dragon skin test models have not failed the tests, its all pollitics. The NIJ (nation institute for justice) has just passed the level 3+ dragonskin and has proven previous claims of inferriority wrong. They (us military H.P. white labs) used inferrior testing methods and botched the tests. Also the manufacturer of the standard interceptor is a major Bush/Republican campaign contributor, this is why the DOD will not let anybody wear it.
Trauma with the skin is suppost to be quite managable as the force is spread over a large area.
As for the steel core armor piercing question. Steel core has better armor defeating proporties than non cored ammo, but is still far off tungsten tipped or sabots. The steel core helps the bullet from deforming and loosing all its energy at the surface.
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