Thanks everyone
Yes, that's body hair you see. I haven't got Generations yet, and probably won't for a while, and I thought I would dislike body hair, but it really does make the sims look more realistic. I'm not a fan of the chest hair, but the arm and leg hair definitely makes it look more realistic.
I was so glad that Leda didn't get the "Steel lips". Arche did, but I think they suit him quite well.
Arche is also the first person I've used that particular facial hair on - I think it suits him too.