Can't you add it to gear and use it to get Hamlet Defense points?I don't think they'd do it to allow you to increase the tier of Materia. It would make it too easy to get high level materia.
It would be nice to have something to do with them though. I have way too much at the moment, is there nothing I can do with all my level 1 materia except sell it for 36 gil?
I don't think that would be an issue. Even with the trade values I initially suggested, you would have to trade in 24 tier I materia to create 1 random tier IV materia.
Additionally, you should keep in mind that as the game stands today, a LV1 character can equip a L45 Dated Tarred Voyager's Belt, a pair of L48 Mahogany Pattens, a pair of L50 Dated Mythril Wristlets (or any number of other Optimal Rank gear) and spiritbond/convert them into high-level materia. It would be much faster and easier to convert one Felt Gown than it would be to convert 24 low-level items for trade-in.
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