Both armor and evasion increase durability against physical attacks. Which is better?
Each point of armor increases your "effective hit points" by almost exactly 6% of your total hit points. Evasion is also equivalent to having more hit points, when strictly looking at physical attacks.
If you are a hero with 0 armor and you add 6 armor (550 gold chainmail adds 5 armor), this is like having 36% more hitpoints, already more than butterfly's 35% evasion.
So what's the catch? Why do we ever want evasion if armor is so good? It's because although each point of armor is worth 6% of your total hit points, it does not increase EHP by 6%.
If you are going from 6 armor to 12 armor, this is a 36 additional hit points/136 effective hit points = 26.5% increase, significantly less than butterfly's 35% evasion.
Thus agility heroes with high natural armor benefit more from Butterfly's evasion while low-armor strength heroes prefer Assault Cuirass's armor.
However high-armor strength heroes like Dragon Knight may consider a Heaven's Halberd for evasion while also benefiting from the strength bonus!