Yea chain is very common, leather is too of course but you should be putting the chain on over that obviously.
I love the new update, it makes the games a lot more tactical. When my brother and I got to the deathmatch we didn't even have full iron, which shows how rare it is. Of course, we had enough diamonds for two swords and a pair of boots that we never ended up crafting since we found the last guy.
I would prefer to keep iron rare as it is, but it will definitely give the people that are searching for outlying chests a better chance if there's more ingots.