Yeah, if they were going to fix the problem (and they won't), they would need to do something like this to make gear less temporary so that it can be more interesting and meaningful.
This will absolutely never happen in FFXIV but if I was going to make changes to improve progression in XIV:
- Freeze the level cap at 99. Player level no longer increases.
- Item level only increases on expansion launch and does not increase with subsequent patches until the next expansion releases.
- Remove time-gated tome and augmented tome gear.
- The currently useless Artifact armour that exists only for glamour can be upgraded to +1, +2 and +3 variants throughout an expansion. These have increasingly better stats and unique and interesting effects.
- Savage raids should offer a similar set of gear that can be upgraded with each savage tier. These should also have increasingly better stats and unique and interesting effects.
- Ultimate weapons should offer more than a materia slot. They should be objectively the strongest weapons in the game.
- Relic weapons should require more work to get, have interesting/unique effects and be better than other weapons before they're completed at the end of an expansion. They should be close to competing with ultimate weapons, maybe more useful in niche scenarios where you can make use of their special effects.
- Crafted gear should be catch-up gear. It should not be better than the gear from the previous raid tier. It should not make your previous progress irrelevant. If people are worried about crafters becoming irrelevant, add some powerful crafted accessories with excellent stats that are very hard expert crafts that require BiS crafter gear and rare non-tradeable mats that are hard to get.
Other sources of gear could also offer relevant gear and by the end of an expac your BiS set would be an Ultimate or Relic weapon with a mix of Artifact and Savage gear, with a couple of particularly nice pieces from other sources added in.
If we're going to have meaningful gear progression, gear needs to last a lot longer. The scope of gear would need to be an expansion, not a patch. You can't have meaningful progression when that progression only takes a few weeks and is completely deleted every few months.
Otherwise, gear is pointless and should just be removed because it adds zero value to the game IMO.