I believe the Leather Wolf is a very sophisticated suit.
However, it also looks very fetish-y, especially with the metal rings on the torso, and partly because of the dark and glossy leather.
It makes me feel uneasy to know this suit was on TV and was photographed with kids. The suit suit elicited the statement "what the heck is this guy supposed to be?" from my (non-furry) girlfriend.
In my opinion, the leather wolf suit crosses the line of decency a lot further than, say, wearing a dog collar with a leash attached, which I also find questionable to the extent of agreeing with the ban.
This is, obviously, my very subjective impression. I understand it is hard to draw any lines, and that the main difficulty is to not over-ban (and stifle creativity and self-expression, highly valued in the furry community) rather than occasionally under-banning (and accepting that there's always going to be something that squicks some portions of the audience).
I do think, however, that if a suit squicks your average "full-blooded" furries (people who like multiple aspects of Furryness, e.g. art, suiting and the lifestyle at the same time), it might me crossing the line.