This was an old feature in Everquest 2 that allowed players to convert their heritage equipment (essentially exceptionally rare, unique equipment) into housing items to either mount on walls or display around the house.
I think it would be a great feature to have here in FFXIV as it would allow us some measure of a trophy to show off unique pieces of equipment we've managed to collect.
Of course ideally I would prefer we just got mannequins to display whatever we wanted but SE has been silent on that subject for a long time and this would be a nice alternative I think.