It's incredibly challenging to say the least.I think it must be hard to design around lack of gear loss. Seems like the game would be much more fun if people lost items, but drop rates were high.
So you could have fun playing the actual game running around getting cool loots, and fighting what seems fun, rather than the metagame of how long can I make myself grind till the drop happen so I can make my suit that odd 1% better for no good reason.
In my own personal opinion...being able acquire 100% LRC and have gear that essentially never goes away hurt the overall economy more than anything, and imbuing did a lot of damage to loot drops since you can pretty much make whatever you want. I would of much preferred to see an imbuing system where properties can be transferred from one item to another, but the impetus to find that property is still on random loot generation rather than being able to cherry pick stats, again a personal opinion. As a player, however, I tend to like these features as it means that I don't have to carry reagents around on my mage, which is a huge convienence and the gear my pally runs around with will last forever and I get exactly what I want.
I do remember a time when running around in GM crafted armor with a GM katana was a perfectly normal thing to do, and I'm not even talking post-AoS. There was something appealing about that, the way the gear cycle fed right into stimulating the economy. Now it seems anything anyone is interested in is HML with AI and a maxed out suit. I tend to believe, though, there are those that still just grab a set of gear and go with it - adding bits and pieces where they can find/afford new ones.
Just some random thoughts while I sip my morning Arnold Palmer