Now you've got your armature, but it's not much use until you add some more bones to it. Think about your body for a moment -- you've got this thing you call a 'skeleton', which for our purposes corresponds more or less to an armature object. Read on, for more useful information!
You can use goals to either pin certain parts of a mesh to a location, or restrict the amount of movement away from the defined goal. So you may for example use armatures to animate your object but use a Goal group to define areas that are flexible and that react to Soft Body deformation. Since a simulation can be set up to take into account mass and gravity, you can easily create animated objects with realistic physical behavior using the Soft Body solver.