Yeah I have heard similar ideas to that one being tossed around a few times. It would be a pretty great way to buy/sell gear that's a color no one ever makes.

I'm really not too sure how you would make Quality/Touchups mean much without having it influence HQ chance, although it didn't really seem to matter anyway... That's why I wondered if it had anything to do with making applying Materia less risky. When precious gear is at stake, any chance at getting that gear super-powered but greatly reducing the risk would be a huge deal.