If successful jumping at 120,000 feet, that means that NASA could deploy these same space suits as an exit plan for astronauts in an emergency.
What? For exit plan you need a way to slowdown astronaut from orbit first.
Those ceramic tiles have to be placed in the right alignments to dissipate heat. So we are now talking about a rigid 'suit'. So for the rigid structure we'll need reinforcements and ways to move and handle stress and structural load at high velocities - we don't want that transmitted into the human body. (We've tested supersonic velocities, but not re-entry)
The parachute will also have to expand in size to handle the extra weight. Going down this line I we soon get to a point where we may as well call the whole thing a pod and be done with it.
All of it pretty much hinges on ceramic tiles needing to be oriented and then added structural weight.
Yes, the heat from re-entry is caused by the slowing of the spacecraft's relative speed from the incredibly fast speeds of orbit, as gravity gains hold of it and pulls it even faster. If someone exited a spacecraft in space, with zero drag, and headed towards earth, they would be moving at faster than their terminal velocity and would likely burn up.
But if someone had an issue in a sub-orbital flight - or on takeoff for a space mission - bailing out could be a viable option.
(Interestingly, this is why Col. Kittinger made the jumps he made with Project Excelsior in 1960 - to test whether an astronaut with no skydiving experience in the upcoming Mercury space program could successfully escape their spacecraft in the event of an emergency during the ascent.)