Similar to the idea of the original poster, but have the item bound to the person when equipped.

Make the gear regular, so that way a player can hold more than one, then when they trade it to another person, and the other equips it, the gear become Unique/Untradable. Also allow materia be able to be put into it, but the first materia is not 100% guaranteed.

This way crafters are still useful, and cotent has a purpose.

Just seems to me that it will have to be done this way, otherwise... what is the point of repeating dungeon runs for anythig other than the achievement of beating it?