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Restricting gear to certain quality tiers or level: Not only will assure the vanity system will get hammered with angry criticisms the moment its unveiled, but almost defeats the purpose of a vanity system.
If someone finds a standard tier (white quality) and/or low level piece of gear they like: just let them use it in the vanity system please. I've never met anyone but a developer that thought quality tier restrictions on vanity gear is a good idea.
I know why you show concern over this. WoW's transmog system was restricted to green or higher gear. This was more because transmog also made the items soulbound to you, which white gear is subject to in this game. As such, I wouldn't worry about them placing a gear quality restriction. It'd be pointless to place one seeing how things are in the game.