Open world content should be just as rewarding. This is the problem with new MMOs, they put everything in instances and pretty much negate the reason for being an MMO in the first place. Same with quest based leveling, what's the purpose of having monsters strown about that isn't part of your kill 5 boars for 7,000,000 exp and 70,000 gold quest completion?

If anything it should be a tier above instanced gear, not only will it drive competition up it will be very temptin to actually do the content.