Two things should be said about Armor Class. First, as of 3rd Edition, it goes up now (thank you!). Second, though the language used confuses this, it's been officially said that AC isn't meant to show how hard you are to hit; it's supposed to show how hard it is to land a hit that actually hurts you. Sure, you're still technically hit if someone clubs you in the back while you're wearing full plate, but...

I will grant that AC isn't the most realistic mechanic in the world. However, it is fast and simple, so if I were running a D&D game, that isn't one of the rules I'd try to rework.