I don't see a problem with the crafting drops. They keep supply up for the crafters which keeps the prices reasonable (crafters need a ton of these materials.) A lot of people lot the gear to turn into GC points to buy more crafting mats.
From the perspective of gearing up a new character, these drops are more of a bonus. The system is designed to push you into i90 faster so you can start doing current end-game instead of trudging through dated content to catch everyone else. You run a dungeon and if the gear doesn't drop, you get myth and soldiery tomes to get gear that you need even more than the dungeon drops. If that doesn't float your boat then do your daily hunt bills and within 3 days you can buy an i90 item. In no time you'll be geared enough for Labyrinth of the Ancients which drops nothing but gear that is equivalent to the best dungeon drops in the new dungeons. This leads into coil, leads into Syrcus Tower and let's not forget about all that soldiery you're getting to boost your ilvl more. If an armor drops that you need, congratulations you get an immediate bonus to your ilvl. Yet another alternative in this system is if you're getting mat drops, you sell them and can soon buy ilvl 70 gear, it doesn't even have to be HQ anymore cause your only goal is to bump your ilvl up to be able to enter more content.
From a vanity perspective, it's "working as intended" because the vanity grind is what keeps old content turning. You keep trying to get vanity gear which has a smaller chance to drop which keeps you running the dungeon. It's no different from the other vanity gear such as the sailor outfit which, if one didn't want to pay the outrageous price for, would have to pop a large number of treasure coffers to get the required materials for. All the time you're grinding out your vanity, you're getting crafting mats which can then be sold to crafters to help them along in their game.
If you need that tingling feeling you get when gear drops out of the final chest, it's nice but let's not kid ourselves that a vast majority of people are there for myth and soldiery tomes for the gear they need. I would argue that most don't care what comes out of the final chest unless they want the crafting mat or to lot a piece of gear that they can turn into GC seals to buy a crafting mat for use or profit.


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