Steve had a wonderful idea to dye his leather armor white. He saw that it looked like iron armor. He then died it yellow and it looked like gold. He the got a devious idea to color the armor cyan and it looked quite a bit like DIAMOND ARMOR. He walked into town the next day and all the other players were flabbergasted at Steve's armor. No one has seen anyone strutting around in diamond armor. The reason no one struts around in diamond armor because the town has a criminal group that steals diamonds. If you are seen with any diamonds at all, they will hunt you down and steal your armor. So one night when Steve was attending his potato farm, two members of that group came up behind, killed him and took his armor. When they brought it back to there base, they found out it was fake. Steve re-spawned and made some more armor and forever trolls. The towns folk still don't know how Steve still nonchalantly walks around in "diamond" armor all the time.
This was posted before 1.4 came out.