I used to use Vaseline on my lips and my feet for many years. My lips are very sensitive, so I have to be careful what I put on. I noticed that I had to use Vaseline more frequently with time, but because at the time I didn't know what else to use, I carried on. Then I started learning about ingredients and found an organic lipbalm that only had cocoa butter, olive oil, beeswax and vitamin e. My lips have never been more hydrated! I also stopped using Vesline on my feet and switched to virgin shea butter (on dry feet). My feet have never felt so moisturised. Now, I have never had hard skin on my feet, so that was never a problem. It's just I have very dry sensitive skin, and I needed something that would moisturise all day long.
Having said all of this, my shower cream (which I have to use because of the way my skin is) has petrolatum and paraffin in it (it doesn't foam at all), and this has been the only thing to calm down the nasty ithching and flaking. Also, I have used body lotions and creams in the past that contained petrolatum or mineral oil without any problems.
I think it all depends. I try to avoid using it on my hair, lips and feet, but it does seem to calm the rest of my skin!