Destiny is not about progression but keeping you playing. No game I've ever encountered make all your gear drop by half their attack and defence value.
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Numbers can always go up. So bungies 10 year plan is to recycle in game content, increase levels, increase damage numbers, and sell all that back while locking you out of what you already bought unless you BUY the newly recycled content with higher damage and armor values. The game has become pay to play while we remove rewards from what you payed for already.