kracken,
I'm no MD nor a skin specialist for that matter.
Fortunately, you seemed to have been "checked out" by those "in the know" and I commend you for that.
This (may) help or not, I don't know of course.
Are you using LOTS of soap (particularly antibacterial / deodorant type bar soaps) "down there" ?
Soap is pretty rough on skin and particularly the "powerful" special purpose soaps.
I would stop using soap on your genital area (at least real heavy lathering up type bathing down there.)
As an experiment to see it this will help, I would use plain water and not too awfully hot at that when bathing that area. Daily "plain water bathing" should be sufficient for that area alone for awhile while during this trial period.
As a follow-up to that, I would (for awhile) try using a high-quality baby oil with vitamin E and aloe vera which promotes good skin health overall. Massage it in on the shaft and do this maybe once a day for awhile after bathing with plain water. See if things (your condition) begins to settle down a bit... You can always stop if you encounter any reactions to that.
I have used this kind of baby oil product for a couple of years to keep skin more supple, especially "there".
Chicago_girl's suggestion may be good too but, I would try something simple and VERY basic first to see if your dryness improves. I would discourage using any possible caustic "agents" on your skin just now...even those with real medicinal qualities. I would stick with the very basics.
When did this condition first begin? Or, have you always had signs of it? If it has recently flared up, then I suspect something you've done (like using strong soap, etc) might be the culprit. It could be the most innocent of action on your part that started this problem.
Or, could even be some allergic reaction to your underclothing? Did this condition occur after switching
styles or brands...what about strong dyes in the fabric?
Anything could be possible with an allergy, should that be behind your condition.
If the dermatologist said "it can't be treated" then he or she should NOT have stopped there....While there may be no cure, there surely IS (or ARE) ways to make this more manageable I should think. There's always the option for a second (or third!) opinion plus research material "out there" (internet, libraries, medical journals, etc) which could better inform you.
BTW and FTR (for the record), those several doctors you saw even "ticked me off" in their flippant way (it seems) of leaving you with no real direction of care.
Though dry skin in that area certainly is not "life threatening", it's got to be a real aggravation, isn't it?
Here's hoping you'll get some help and some relief...
--like real SOON !