I do not frequently post on these forums due to the nauseating cesspool of ignorance and arrogance. However this topic is most troubling. I have played two MMOs with gear binding in them as a feature, which will remain nameless as not to divert the discussion.
My first, in the initial night of playing, I was very confused when confronted by the Market Place/Auction House/Bid Counter ect. I could not sell the equipment I had used or picked up and tried on. I thought maybe I needed to be a certain level or accomplished a certain quest. I decided to ask the few dozen people around me for insight hoping someone would respond. I asked how I could sell the items in my inventory on the market. Someone responded with another question asking me what items I was trying to sell. After hearing my response they asked if said items were bound to me. "Uhh, what? why would items be bound to me?" (at this point I would have accepted a practical reason or a lore based explanation...I got neither) His response: "Because the developers didn't want to bother with the economy." I had no idea what that meant at the time. But we'll get back to this in a second.
Game number two was not as large of a shock thanks to the services of game number 1. And it did not bother me nearly as much for one reason. I could reasonably craft my own gear without having to spend inordinate amounts of time farming. The mats were things that dropped naturally while progressing through an area and doing quests. Once and a while consecutive boss kills would be in order, but not in excessive amounts so it could not be called grinding. But still, when you devote this much time, energy, and resources into any item in any game it does not feel good to toss it for pocket change or trade it for a free inventory space. I collected all of my gear through the levels that I had upgraded and spent my savings on hoping they could be used for something else in the future. So I ended up basically throwing all of them away and playing for another day before I realized I didn't want to have to deal with that again and never logged back on.
The first story highlights the economical effects that gearbinding has on players and the game as a whole. It does not seem logical, practical, or fair. There are other ways to accomplish equal opportunity relevance for DoL and DoH(a few have been mentioned or suggested in this thread) that don't have negative effects on players mentality when leveling jobs. Which leads us to the second example.
The psychological effects on players when they are left with no option but to basically toss their favorite weapon or armor in the ditch are not unnoticeable. The piece of gear they pour their heart and soul into so they could finally participate in the content they wanted to, in the way they wanted to, and feel like a "hero" for the first time in gets mud slung on it after it's faithful service. I always found comfort when I was done with equipment when I could give it to someone else who would also gain enjoyment from it.
I'm not focusing as much on the economical portion because I think that has been adequately covered. I'm more concerned with players feeling like they're wasting their hard work not because of their mistake(which is acceptable most of the time) but because that is the way the game is designed. There are a lot of people out there that aren't bothered by this, evidenced by all the MMOs out there being played right now. Unfortunately, very few of those people stick around for too long in those games.
I'm all for putting crafters and gatherers on a pedestal. This is a not that. This is a bandaid, this is sweeping it under the rug. This, does not work in the long run.