I would say there is a lot wrong with it. I'd even wager it is one of the biggest reasons player retention is so bad.
And as many people have said many times it simply does not feel better. It may be true that each piece is significantly better than the last. But at the same time those pieces aren't satisfying to get and have no wow factor to them. Because as significant as the upgrade may be the fact remains it's an incredibly short lived one. Everything you get in vertical games is trash.
Which goes back to my earlier post and another common opinion you see on the forums and in game.. players just dont bother making the effort to get gear or something that will be a pile of trash tomorrow. Hence why many don't raid or bother with extreme primal. It's just not worthwhile..
All of which is a contributing reason to why the game struggles to retain players..