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When the worn equipment being recognizable doesn't matter anymore, the game is automatically shit already (at least in regards to gear-acquisition).
Then again, when the gear looks like in neo-WoW, I guess it kinda makes sense. Wasn't really a problem in TBC, though (looking like a Christmas tree while levelling was a brief problem, with dungeon sets, crafted gear and tier sets - particularly T6, looking great with only a few exceptions like paladin T5).