I think I have the same thing. It is on my upper chest and upper arms. Mine just looks like I can see all of the pores really well. It doesnt itch and its not discolored at all.
I'm no doctor... but it sounds like I have the same problem. I've had it since i was a little kid though. I permanently have dry "chicken skin" on my biceps, it's not overly noticeable but does look like a mild rash and has a sort of abrasive feel. I was given all sorts of lotions for it but none of them seemed to do any difference. I found using exfoliating products like buff sponges and exfoliating face washes reduces the symptoms. I don't know about you but I don't get any itching from it. Hope that helped a bit... I'd also like someone to shine a bit of light on this if they have any ideas what it is.