I'd say stop using alcohol wipes. I wouldn't use my toes, due to the fact that I do everything possible to protect them. The only time I use alcohol wipes for BG testing is when I'm running, since my fingers end up with a slurry of gatorade, jelly beans and smarties all over them and sinking isn't practical.
For dryness, I use Aquaphor. Tattoo shops recommend it and it seems to be strong stuff that helps dry crackly skin, cuticles, etc. get better.