I've been using macros to change classes pretty much since launch, so I don't have the OP's issue of getting naked every time I switch classes. Lern2macro. They're eventually going to have gear be auto equipped when you do switch classes, so you won't even have to macro in the near future.

The "favor system" doesn't work as well as designated gear because a) it's more confusing to newbies/less streamlined or easy to explain and b) it's harder to balance for the devs. Pretty much any gear that is worth a damn is going to be class locked, because it's easier for the dev team to balance how future gear will scale.

I don't know about you, but I'm tired of looking at the wards, seeing five things that "favor" my class, and wondering what the hell I SHOULD be wearing. This applies more to DoH and DoL for me, but I have this problem with belts, shoes, and pants on my DoW and DoM classes. The "favor" system was confusing, and pointless to anybody who wants to wear gear that works for their class.

tl;dr: It's more streamlined for the devs, and easier on the users to have class/level specific gear.

Also, the OP claims that this current system doesn't work, yet I've never heard anybody complain about it aside from a handful of people on the forums, and a few RPers here and there.