A good point, but I have definately heard it was used-I think Neil told me once. He said that mics which have it look whiter in colour (which is understandable).
As far as chamois goes, is there a special type that is good for a re-cover job? Because you can find quite a lot of different types of chamois-leather, and they all range in quality. The chamois that I have seen looks really yellow in colour, and the texture is soft, but not plain (if this makes sense). It doesn't really look suitable to go on a mic.