Recently I have dived right into making skins and I am enjoying it so far, but there is one skin I want to make and my inner artist is not letting me complete it unless I add a hat...
So the question is why has no one ever done a hat on a skin before?

It's impossible due to the size limit of the character model. Technically speaking, you could do a hat, but you'd have to make the head smaller so the hat would fit. Would just end up looking stupid. So it's bandannas until Mr. Aksoy gets around to improving the resolution of the character model.

wait... so if I make the model smaller, the skin will fit? hmmm....

Maybe, but that can look wierd though.

Not entirely sure if it works that way.