That is an INFERIOR design compared to a system that doesn't encourage gimp in the first place. I wouldn't have to be a dick if the game didn't reward gimp.
Don't even give people excuses to wear poor gear to performance events, and no one will try to wear trash out to sp in, and no one will have to tell people trying to wear trash out to sp in to wear their good gear. This doesn't need to be a situation, and SE is forcing the issue needlessly.