So let me get something about challenge loot corect...
Apart from the emblem the LL of drops is not maxed up like 385 or 400? In other words the loot is almost the same as non-challenge mode. Am I right in understanding this?
Back in TTK, challenge mode was implemented to combat the frustration of running the raid and getting loot below one's LL; a guaranteed way of getting max gear at a time when nothing was guaranteed.
Then the April Update came along and not only provided a new way to reach max level, but made it to where loot would not drop below your LL. I shot to max LL like a bullet.
Bungie slowed the LL train for Rise, but kept in place the rule that certain loot would not drop below your LL. In doing so, they shot Challenge Mode in the foot.