This is how WoW, FFXIV, and every MMORPG like WoW does things. In my opinion, the point is so that someone can't just buy their way through the game but instead has to actually play it if they want gear. The only downside is, yeah, I know it sucks to not be able to sell your old gear, but I think overall it's for the best. It is also a shame you can't live out any "treasure hunter" fantasies in WoW-like MMORPGs, but you'd have to find an old-style MMO for that nowadays.