Totem armor has no effect if the enchanted permanent is put into a graveyard for any other reason, such as if it's sacrificed, if the "legend rule" applies to it, or if its toughness is 0 or less
However, not being purely Innistrad, this is a set that many will prefer for its singles than its boosters, and there are a few cards you'll really want to keep an eye on to get the highest value
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As an aura, giving your creature +1/+0, Lifelink, and Ward 2 for two mana is a decent deal
Like those, it was banned to avoid the perceived-barrier-to-entry, but was strong enough to be a candidate for banning even without the optics especially in long games where the card draw yields inevitability over time