I think a fair compromise would be glamor be set as a consumable action and then you set it to gear without actually needing the piece anymore. It's a Gil sink and encourages more crafting. This and it frees up inventory and is the best alternative for the servers.

Say I want to glamor some 40lvl body armor to my raid gear. I consume the 40lvl body armor and now I can glamor it to whatever I want (within the normal limitations). The 40 armor goes poof and I get to recast it as much as I want without needing the space.

Granted it'll still use up data space but let's face it, most characters won't have an obscene wardrobe option.