Transparent skins are needed!

I seriously think that there needs to be a 100% transparent skin, as many tiny avs use invisi-prims, and these prims can cause unwanted effects. Several people I know would appreciate the invisible skins, and I know I would.

Maybe I'm misunderstanding your dilema, but I know this: It's impossible to hide an avatar with a texture overlay because the default (flat) skin tone is always 100% opaque. There simply are no slider settings to make this color layer disappear.
This is one solution for making an avatar invisible; although, as you mention, it is not perfect.

She seems to just be wishing for a way to make the entire avatar (base skin included) invisible with a texture, and seems to be aware that it can't currently work.

It seems that LL has almost definitely decided to not add this as a feature because of technical and ethical worries.

Ferryn, you might check out or post in Feature Suggestions and Feature Voting.

Although some might see this as a put to good use like making larger avatars, or avatars that exceed the current character mods. There's just to much of an incentive for it to be abused used for spying or as a cover for griefing.

So far the Lindens have been ignoring anything about this it seems.
There is already a proposal about this that has been over 600 votes for about a month now, and it hasn't even been commented.
http://secondlife.com/vote/vote.php?get_id=422

An "invisible" avatar is not useful. One with a more permissive wireframe would be.

Like Poser itself, if we could increase the number of joints and add additional attachment points to the mannequins wireframe, we could do multilimbed and quadraped creatures.

As it is, you can't stretch the foot enough or shrink the thigh enough to do it right, thus the use of invisible prims (or a "skin", if that were possible) to hide the hyooman mennequin.

Only problem I see here is it would require a different Franimator set up than the default doofus human one currently used.

I disagree. Using animations alone to 'squish' stuff doesn't help, especially if the avatar needs to use attachment points of the offending limbs.

If anything I would like for the Lindens to, at the very least, allow us to make transparent textures for gloves and boots. If they're worried about possible abuse (which is absurd since people can do this with a giant invisiprim), then gloves and boots won't obscure the entire avatar, but would make limbs transparent for things like primhands, prim paws, and digitigrade legs.