In the entire franchise, as power levels increase, how actually effective is armor? If a character wears a gi, as opposed to battle armor, are they susceptible to becoming hurt easier?
Not very. On Namek Vegeta says the high tech Freeza armour will protect against small attacks but that's about it. It wasn't enough for Goku/Gohan to choose to use it during the Cell Games, their normal gi was sufficient.
Nothing major. You could say the armored being would look less rough after a destructive fight. Though if Piccolo's around, that can be fixed up in no time.