Those actually are animated via bones for the most part. You can tell by looking at stuff like Vanya and to a lesser degree the acolyte set.
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Transmogrification is what WoW uses, you go to an NPC and pay in game currency to make your current armor look like another piece you have acquired, so you retain both pieces but just change outward appearance, can be undone for a small fee. Transmute is a more permanent and involved process, that combines two pieces of armor into one. You keep the stats of the higher level armor but gain the look of the other piece, however the old piece of armor is destroyed in this system. Alternatively, some MMOs such as LoTRO, EQ2, and Rift have simple "false" or "vanity" armor slots that override the appearance of the currently equipped armor. That system is fast, easy, and requires no use of in game currency to switch looks.
SWTOR gets it right with the way you can slot Armor, Mod, Enhancement, Barrel, and Hilt components into any piece of customizable gear or weapon. So you can be wearing "Slave Girl" or "Dancer" gear that has stats just as good as the heaviest (looking) "Vanguard" armor, by slotting the upgrades you want into the gear shells. And no matter what you think of "Cash Shops" there is a huge selection of customizable gear items and weapons for mix and match, more all the time as new Cartel Market items are added.
The mechanism we have here would have to be completely reworked to put something like that in place though.
I would love a DCUO system...
BUT...we still can't /tell in dungeons. So i expect -another- 'little things which make it anoying' system.
I'm honestly trying to find it, swore it was in one of the Live Letters where they said it wasn't separate slots. I'll keep looking though.
EDIT: This is NOT the quote i'm referring to, but seems related.
Quote:
Looking ahead to Patch 2.2, crafters will be able to alter gear designs using a “template” system (official name TBD), giving them yet another role in creating desirable gear.
Well... Papalymo wore plate and we know he is a thaumaturge...
http://static1.wikia.nocookie.net/__...C_Render_2.jpg