It sounds like you're headed in the right direction. I am just going to throw this out there because I have to consider the source, but just by chance there is something to it, maybe.
My MIL has a dog with similar skin issues. Turns out her dog has been suffering from a low grade chronic UTI. She didn't really show signs of pain so it was never tested. She did scratch and lick frequently though so they thought allergies too. Anyways, it seems they got the UTI under control and the skin issues are better too. So I don't know how the two can be related, unless the scratching from maybe itching of the urinary track, led to a chronic skin infection.
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