I think head shots should do more damage. However what about putting a max on the damage from a certain area. For example you wont be able to get shot in the foot over and over again until you die. But it doesn't have to be that specific maybe a leg can only contribute to 50% of total health lost. Also what about the idea of being able to stack types of armour, so you can wear chain-mail and plate armour. After all the knights wore chain under their plate, or maybe you can only have one piece of extra armour. Also since there is full loot it is risk/reward. Higher defence but if you die you lose more money.
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