So basically it's to suggest to redo the whole thing (I'm sorry, I do feel bad for suggesting something like that):
- Get rid of all the materia that nobody wants, because they're useless since they add an effect that is so minimal it basically has no effect at all. (Elemental resist, status resist, etc...). Having these useless materia in your game doesn't enhance your game in any good way.
If you don't want there to be a 100% chance to receive a "good" materia from soulbinding then add a cracked materia version.
- Materia transmutation: allow it to upgrade the tier of a materia. Two different types of recipe examples: Strength Materia tier II = 5 * Strength Materia tier I or Strength Materia tier II = Strength Materia tier I + 10 * Cracked Materia tier I.
Tier III , IV materia recipes could require more of the lower tier materia.
I think this suggested system would be a lot more enjoyable and would actually improve the game / make it more enjoyable than what was currently added and has no added benefit at all.