Yeah, like back in D1 when you reach a certain Light Level, it auto-dismantled the blues into materials/ glimmers. I would so much to see that again in D2. Its annoying going into my inventory every missions/ quests/ thingy just to dismantle them. Every day.
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That was only for green engrams,you still had to go to the cryptarch for blues still.
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Last time I was on D1 is just 2 weeks ago, and some of the blues do get auto-dismantled not just green.
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Sorry but you are wrong,only greens once you hit I believe 385 light.
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Well, I thought it used to at one point before D2 exist. But then again, maybe cuz there's a slightly higher chance a player would receive a legendary item after it get decrypted by Rahool. In D2 blues are so blamming boring as it doesn't offer a chance for legendaries like back in D1.
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I think it is mostly just for the cryptarchy reputation as well as legendary chance like you said