They need to add it to rare/ex gear but in a limited fashion. Maby cap it at 2 materia per piece or something, where crafted item can get up to 7.

The current system is going to constantly make dungeon and such gear become worthless as you level. Negating the content in the game. For instance Dark Hold, make it where you can materia on those piece there is a reason to do the dungeon again, currently every piece is crap because materia gear is better.

This game would be decent now for endgame if there was still a reason to do faction bosses, World (higher lvl) NMs, the dungeon, the 3 settlements and ifrit. With patch 1.19 everything outside Ifrit and Settlements is worthless... and even half the settlement gear is worthless. Causing a massive lack of content.