Actually, in this case the antecedent to the preposition "them" is ambiguous and can either refer to the points, or to the "armor and weapons".
If you read the original Japanese post, it's a little clearer that you turn the actual item into materia.
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"Them" could be talking about armor and weapons as well. After the "conversion" the weapons and armors are gone and all that is left is the weapon and armor's stats in crystalline form. If they said Materia is a crystallized form of the weapon and armor, then we'll have a bunch of people thinking they could wear crystal gear.
Whilst I'd agree that it might be a good idea to consume weapons/armour, I think the whole 'oversized weapon pool' thing would eventually sort itself out once we got new content and the current range became less desirable, and perhaps alternative and cheaper synths than weapons and armour themselves are made available.
I don't think removing materia should destroy it. I'd like if you were able to learn spells and or abilities from materia like FFVII, or especially job traits. But really, please keep calling it Materia, and please make the "crystals" spherical and look like the materia of FFVII.
Actually, I really hope this isn't like synergy in FFXI, I REALLY hope it's not like augments, make it so you can craft specific materia and allow for combinations to unlock new effects. I don't care for randomness on my gear.
I thought you would build up ap on gear and they would give you materia slots for extra enhancements. just speculation. it was a vague statement in my opinion.
Just want to point out that Bayohne mentioned weapons and armor .... I surely hope that tools are included in that.
This way, EVERY class can participate in creation of materia. One possibility / hope / speculation is that the experience that went to the now-defunct physical level is used to create the "attachment points" needed to convert said item into materia.
Also, using an NPC (who presumably charges gil) to convert the items into Materia is a wonderful (imho) new gil sink. This system creates both a gil sink AND an item sink... :)
materia system was just your magic and stuff in ff7, we already have that, were just missing traits and ablitys for each class like right now its too universal Job specific.
if they add something like that it should be none item system should let it be made another way, cuz just going to the markets and buying one is blah and typical, should be like ff8 draw mako from points on the map then build the materia you want from a list your character makes from quest then have that materia forever then you can upgrade it later or level it up. that would be more RPG and something you can build off of.
--just my version.