i think vanity slots would be purty cool...
The only downside I could possibly see...though its not really a downside too much...Is people purposely wearing the starting game armor in vanity slots to deceive people in game modes such as the iron banner...though it wouldnt really be deception so much and I could care less if someone wishes to prance in the starting gear...
I understand them wanting to give you only one exotic though to create a sense of differentiation amongst endgame chracters that way everyones not just sporting the best exotic gear and everyone looking the same... not really sure what to think of vanity slots in all honesty haha...
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There always has to be a down side. Your right though it would get annoying if people started to run around with starter gear