What I think you should look into is using the curve modifier! This will let you take a single strip of leather and physically wrap it around the handle by following the shape of your curve. Alternately, if a large amount of variety is either not your concern, or to be added at a later stage of the object, you could try the array and curve modifiers together, as well. This will let you take a very small section and follow it along the curve, repeating itself as many times as you want it to.
The ideal set up would be to first start your array, then make your curve around the sword hilt, add a curve modifier, then adjust your array. Both methods allow you to adjust the size of the object along it's length by scaling the control points. This can even be constrained to an axis, in case you need one particular part to be thinner or smaller.