I have another idea to add on, or fix the problem.
Same idea as WoW Transmog. If you like the appearance of item A (and have item A), but prefer or need the light level/stats of item B (which you have as well), then have a way to make item B look like item A.
This would not require a change to the leveling system, and it would not require new items be designed for the sole purpose of customization.
As newer, better, and different looking gear gets released over time you can change the appearance as you see fit as long as you have the item that you want appearance and stat wise.
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But then, how would you cover the stat problem? This only addresses the looks.