Whoah jeeze guys. Did you even read my post? This is a "Dev Concern Post" asking for clarification on what happens when a piece of gear that has materia on it, transforms into a piece of materia. I never stated this was fact or that I found an exploit on a system that isn't even implemented. I am merely stating that if the system works the way it is described then this is a possiblity. Thus the creation of this post, to get some clarification from the Dev Team.
This is what I was thinking should happen, but it was never stated in the Materia Design Description. Just seems like an important part to add. But I guess we'll see.most likely once you attach a materia to the equipment it no longer accepts AP.