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I don't understand where you get a penalty from? The same gears still drop...the only difference in the GC gear is elemental ...this complex people have of I want to have everything needs to stop.
It's a game...which is an MMO so the world is open ended...you should have to make choices some harder then others.
they want to have everything and not have to work for it, like the lv25 raid we have get a lv50 or 2 to walk you through it when they should level cap it. we can exp with a lv50 and be dead as long as were in range we can sp and level up while dead.