How come no one uses this guy anymore, he was used by everyone in the last edition. I haven't seen him in one list so far.
I'm brand spanking new to Lizzies, but somewhat familiar with the skink combo you are hinting at, and I think 8th outlaws it as you are limited now to one Arcane item per model. Correct me if I'm wrong, as I am planning a mostly Skink army (assuming I can figure out a good way to convert old short bow skinks into skinks with Hwp&Sh).
It was a skink chief that used the cloak of feathers (which gave him the ability to fly), and usually the sword of might (+1 strength). No the magic items are two different types, and he is fully usuable.
He is not that effective, and after using a Chief on Terradon, I would never use him again, except in high point games. He does not contribute enough and dies to anything more than a stiff breeze.