Simple. The majority of rewards suck because they were designed to suck.
The goal is to keep people playing in the hopes that they'll find something decent. That's all there is to it.
The endgame content is so shallow that if most people found decent equipment right away, they'd quickly run out of things to work towards.
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This must be your first experience with a loot system.
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Edited by Swiftlock: 6/30/2015 5:18:48 AMA bad loot system, yes. Many other games do a better job at it, in case you didn't know.
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And some do a worse job and are for purely MMOs/RPGs. Destiny is a hybrid with a First Person Shooter so its loot system will inevitably run into problems
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