On one hand, it's one thing to discourage people who only want to be carried through everything, and make no effort to better themselves or contribute to the party. On the other hand, a system like this could also hurt new and inexperienced players who my be trying their best and listen well to advice, but still need time and practice to get better. You could argue that it could be motivation for these players to keep working until they're good enough to update their gear and move on, but that seems a bit harsh to me. This would mostly affect leveling dungeons and also the 50/60/70 dungeons in terms of trying to keep up with gear. Even taking those out of the equation, I'm not sure it's entirely fair to put those who are inexperienced but doing their best to keep up at a disadvantage for rolls in trial, alliance, and raid content either. If they actively worked to contribute to the group, I see no reason to penalize them for not being as familiar with the content and/or their jobs as those with more experience under their belt.