While you'd see less content, you wouldn't see no content. People working on art, music, level design, and even encounter design are usually not the same ones who work on server netcode and backend infrastructure. Whatever issue causes them to have to limit the glamour closet to 200 items instead of a WoW style "every item that's ever existed" one, it isn't going to be fixed by the same person that is animating the next tier of raid weapon drops.
Don't get me wrong: there's a cost to doing this kind of overhaul and everything else will have resources taken away because of it. But this is a big enough operation that it's not just 3 people working on it. Some of this stuff absolutely needs dealing with at some point, because the amount of stuff in the game isn't going down. I mean, my crafter & gatherer logs manage to track every single item I've made just fine. Do that, except for worn equipment. No need to overcomplicate it.