Presently it really feels and appears to be:
Level is far more important than gear.

In fact, I think it's fair to say (in combat), having good gear or having two more levels over a mob, the better choice is two levels.

I'm unsure why this is, and what the true intent is.

I'm hoping.. really hoping.. one day.. Maybe with 2.0... they will sit down, and tell us what their true intent behind all the mechanics, and stats, and drops are... then we can play and say if their intent is being realized or not.

Now, we do not know if this is intentional, unintentional, or in-process of being changed.