Everything you ever buy is immediately worthless the minute you put it on? You can't sell things as you upgrade?...
False. Some things are immediately worthless the minute you put them on. However, all things will be immediately worthless if the only way you see value in the gear you equip is if you can resell it. For what it's worth I do not want to see you lock yourself into a system where you are not punished for your mistakes. You want your cake and eat it, too. I understand some people work best by performing actions as opposed to reading about them so maybe theorycrafting isn't your bag, baby.

As I mentioned above, it's homework time.

Wow.
Your condescending attitude earned you a post report and my response as I cannot stand the holier-than-thou approach. You aren't better than anyone here so I ask kindly - knock it off.

Am I missing something?. . .
Yes.


I predict this causing many more problems in the economy than it "fixes".
Your prediction isn't based upon data that I can tell. The reason for this is the spiritbinding/materia system. Can you see the integration and how this plays out? Or are you stuck on test mode?

There is very little to no place in an item-trading game for account bound, CRAFTABLE items.
There is if you are attempting to control supply in a closed system. If you don't you will inevitably create worthless pieces by never destroying them, similar to WoW; I consider this conclusion ironic considering the flavor of your original post and the worthlessness of gear because you are ultimately asking for a system that will do that very thing.