No, my original translation is not word-to-word, and you clarified one thing:
The weapons and armors coming from crafting, with FULLY FUSED MATERIA, will perform better than those looted from NM.
But it doesn't say what if equipment looted from NM are fully fused (as rep commented before, some equipment cannot be fused).
BTW, allow me to point out one more thing: it is known to be hard to get a fully fused equipment because the ability to fuse 2nd materia is described as "very risky" by reps.
So, as a result, the crafted equipment, fully fused with materia, will somewhat as rare as similar one looted from NM.
It sounds reasonable from the view of balancer, to keep both fighters and crafters busy.
