Basically this is what people are doing:
1-49, whatever trash drops you get from solo'ing the 1-49 dungeons on your good job since you can clear these dungeons in 2 minutes or so.
level 50, Ironworks tomes gear that is level 120
POTD doesn't care what gear you enter with, but if you want to be able to put the skills you learn on your bar, you need to go back and learn them.
level 60, Shire tomes gear that is level 260
Nobody is going to upgrade those now, they will just save up for the 330 Creation or 360 Mendacity gear by grinding for those tomes on whatever job they can get them with.
The point is that POTD has basically made it pointless to play any dungeon content until you get that job to level 60, and by then, you haven't actually learned how to do anything with that job, just spam. So you may as well just grind all your combat jobs to level 60 with POTD so you have less junk gear to carry. This is the entire problem in a game where there's clearly a balance problem. If you want to level all your job classes, you need to carry a set of gear appropriate for that level and job, and since none can share primary main hand gear, you typically end up with no less than 15 sets of gear if everything is not at the same level, and if they are at the same level, you can fold these into just 4 sets and 15 weapons.
That's why people tend not to have good gear. POTD means you can skip trying to get any gear until at least 60, and nobody wants to waste their poetics tomes on ironworks gear if they don't have to and can just sit on it until level 60.