The second word came from a discussion with ardweden. I proposed that it would be a fun sociological experiment to let people vary the amount of skin their character showed in exchange for varying the amount of protection armor provides. I know some CRPGs do this already to a degree. I know in KotoR you could run around in your undies. I think BG:DA also allowed it.
Anyways, in such games, optimization would still happen. Those who wanted to show skin would have to chose what the proper balance of titillation versus protection would be. This optimization would of course be called skin-maxing. (In fairness to Ard, I will note that the word was my idea and she smacked me because it was such a bad joke).