I saw this on Reddit, http://www.reddit.com/r/projecteternity/comments/30lmx2/psa_doubleclicking_equipment_bug/, so credit to user Kirur for pointing it out, but I wasn't sure if he or she would post it here, as I have tested it myself. There's a webm in the thread for the lazy,
http://webmup.com/HArIv/vid.webm
Essentially, double clicking to equip armor removes all passive buffs including racials. Pretty gamebreaking if you ask me. Hopefully there's a way to patch back in buffs you've lost, otherwise I'm going to have to restart my 10 hour game.