There would be no progression then, the point of the game is to get Vanguard gear so you can raid and get better gear from that. People wouldn't want to do the raid or future raids if they didn't give better gear, hell most don't do the Vanguard now and would rather just farm caves for their gear.
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Agreed. A huge draw for MMOs is the draw to be unique and reward effort. The veterans can stand amongst the masses and stick out like a naked dreg streaking through the tower on Friday night. It's a deserved reward for finishing the last bit of content available in the game (numerous times at that). Can't claim luck when you see someone with every drop equipped and maxed. Just saying. Great topic.