[spoiler]Edited 04/23/15 in accordance to the HoW sneak peak by Bungie[/spoiler]
HoW dlc has given me a complete remake of my previous idea. There are new upgrade paths but not for anything below legendary.
My New Idea:
In HoW there will be a new upgrade material used to upgrade legendary and exotic gear to the new max light level.
Simply put, that very same material could be used in conjunction with ascendant material to upgrade the rarity of rare(blue) gear and by extension uncommon(green) gear as well.
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Bungie did everything but the blue/green upgrades...