For me it's the second, so a rough representation. About armour I'm not concerned at all. I know my opponents well and I'm not afraid to ask thrice if necessary about equipment. For me it's a lot about style and fielding these characterful minis. But I also don't like getting my a**e handed to me by my opponent all the time so just equipping the heroes and henchmen with what they have on them anyways is not for me, if that equipment is subpar.
I know of other gaming groups who are very strict on these matters though, even on helmets, lamps, robes and such. The "Weißblaue Strategen" from Munich, for example.