A large chunk of MMOs do not even have palette swapped gear, they just have the basic character outfit and the gear is not even modeled outside of maybe the weapon. And a MMO like World of Warcraft uses the same recolored armors from the previous expansions. At least FFXIV has mostly new gear models in a new expansion.
And actually for a lot of MMOs they do take forever to level a new character to max level, the ones that are easy to level another character to max happens to be the last hold outs of pay to play MMOs specifically WoW and FFXIV. Its pretty clear you have not played Korean grindfest MMOs which make up the majority of the market.
Not to mention other MMOs actually recycle content to a far, far greater degree then FFXIV. I mean damn, you must have played very little of the MMO market over the years to not have seen that.
And talking with my friend, who is a long time MMO player as well, uncapped tomestones means that people will grind it out in a week or two and stop paying. They stop playing till the next progression patch, something that only comes once every 6 months, and that is also a large portion of the playerbase who plays like this. This is why WoW has been trying to push to have yearly expansions by sacrificing the current expansion, so that they get larger more regular surges of money rather then trying to make an expansion last. Cause all they see is they release an expansion, get a surge of money, and then the money tapers off to briefly rise whenever a new raid tier is released and then drops again.
Imagine if half the playerbase (this is a themepark MMO after all) stops paying and playing the game because they have no reason to run the content anymore because it only took them maybe a week to cap out everything they wanted. The result would be massive profit loss which means that Square needs to start firing developers to fit the budget they are getting. Which means less content gets developed due to too small of a team which leads to even more profit loss because there is no way they can develop enough content to keep people around for more then a week if things were not gated.
In fact, how about you go and find a thriving MMO that does not have a endgame gated in some manner. Especially raid level gear. Which is what you are complaining about being gated in the first place