I'm pretty sure they actually designed tail holes into the armor in 1.0. I quit 1.0 a really long time ago, but I remember the tail holes. This was completely removed in 2.0 probably because they got tired of adding tail holes to everything they designed. So now our tails just clip through everything all the time.

Of course every race's hair clips though everything too, and they even design armor with lots of narrow high collars at the neck area with a complete lack of regard for the hair clipping right through it. They just don't care about the clipping of things in this game I guess.