I really loved the idea of "recycling" the level 106 gear for bayld. It does wonders for a pack-rat like myself. I don't like to toss gear because I always think either "I may need it again..." or "man, I hate throwing away work." Being able to get something for old gear helped me let go of some of it.
What I would like to see is an expansion of this concept. Skirmish gear and old delve gear are two things I can think of right off the top of my head. I guess "recycling" it for bayld would be ok, but even better would be the ability to recycle it for currency related to the item . For example, allow us to get a minimal amount of plasm back for delve gear. You could offer obsidian fragments in exchange for skirmish gear.
It would also be nice to be able to do something with some of the older stuff we worked hard for but will probably never use again, such as voidwatch, hydra, and other old rare/exclusive gear. Just the ability to sell it npcs would be great, like we can with shadow mantles and rings.