I don't feel we need a complete overhaul of these systems, just minor tweaks.

Example, make the stat points actually have a real, visible effect. If you have higher STR, you should hit harder. End of discussion.

As for the armory, someone on another thread suggested a license-board style setup for gear. It'd be a nice compromise, people could wear whatever their heart desires so far as they had unlocked the license for it, and it would prevent Rank 10s from wearing Rank 50 gear.