You spin your wheels too much. They can do everything you're trying to do by simply not requiring gear to be worn. No need to re-create the wheel. Just stop trying to roll a brick.

Easy. Simple. Clean. Superior.
There is no counter-argument. Gear should not need to be equipped to be turned to materia.

If you agree, then stop wasting everyone's time coming up with a big convoluted alternative solution.
That's the solution. You don' thave to equip it. That's it. It's done. It's over. Moving on.

Just because they can do anything they want, doesn't mean they should waste any more time doing it than is necessary. You're trying to hard. This is a slam-dunk.