Fair fight? Aren't you Dark Side? There's no fair fights here. If you want a fair fight, would you swap out your armor with lower tier if you saw someone in lower tiered armor? No. In the end, you want the pieces to have an advantage over everyone else, otherwise, the pieces wouldn't exist. All your other points are valid, though, and this is still a lame system. The only thing that gives this system any kind of validity is if you didn't have random drops, only the absolutely most dedicated (time-wise) players would have it. Casual players would never have it, and moderate players would only have some, which would probably cause both casual and moderate players to want to play less.