The custom leather dude in the trade hall should buy hides, similar to the Skinner in Lower.
Yes, probably. Please let us know if handing in hides is overly rewarding, it shouldn't be a hugely profitable thing to do.
Killing, skinning and carrying the over a hundred pound deep lizard skin grants you roughly 100 gold, every other pelt I've handed it gave roughly 20-60.
The hides also weigh hundreds of pounds at times. So its balanced in my thought.
Any time a player says something is balanced I am supremely suspicious.
Certainly less profitable than it used to be on EFU:A. I recall playing a ranger/fighter who'd rack in about 1000 gold a day. But that was because Ymphian Grey wolves gave about 50 gp for an exceptional quality pelt and spawned like rabbits. Less pelt giving animals in the UD and the prices have been reduced significantly.