What part of "That is the most protection which can be practically put on a functional body; any further armor protection imposes a trade off which is deemed too steep to be worthwhile." fails to account for economic factors in the trade-offs under consideration?
Also, we do not yet have the technology to make Dead Boy armor. Link to the 'Heavy' version here:
https://www.lawner.org.uk/rpg/rifts/armour/deadboy1.html
Leaving aside the 'mega-damage' nonsense, the features are: Sealed against vacuum and other hostile environments; five hour oxygen supply; heat protection up to 300 C; suit damage and functionality monitoring system; life support system with heating, cooling, humidity control, and computer interface to control it all; detection, filtration, and purging (in case of a leak, I suppose) of contaminated air; significant protection vs Radiation; an 80 dB loudspeaker; and a 8 km radio. All of which fits into a package of of less than 10 kg. We cannot even put the non-armor systems into a package that small.
The armor that militaries issue to their troops today is the best we can do at our TL. Technology Level is not just about stuff some ivory-tower type can dream up, it is about what can be produced locally. Production and economics are at the very heart of what a TL represents; and if we cannot economically mass-produce anything better, then we are at our TL limit -- and all the small-batch, super expensive stuff that may serve as counter-examples just reinforce this in that they represent prototypes beyond our current abilities.
And, of course, RIFTS -- like Traveller -- absolutely failed to take into account that 'embrace the suck' is a major part of infantry life, and wearing the armor is part of the suck. It is heavy, uncomfortable, and makes it impossible to reach some of the spots that itch. A defining feature of soldiering is the following of orders -- eating the swill in the company mess, carrying heavy stuff, wearing uncomfortable equipment, etc; the armor issued to soldiers would have non-soldiers noping out pretty quickly when the perceived threat was gone. The idea that folks will happily add extra bulk and weight and acheive something the brass was unwilling to order soldiers to do seems a little fantastic.