Agree with the op. Legacy right now is utter fluff garbage. Maybe they will add meaningful perks down the road, but 1.2 Legacy...meh.
The game desperately needs innovation, more endgame and more immersion. They blatantly invested way too much in the story/voice overs, and now they will be playing catch up for the next few years to get this game up to par. The fact is gamers are fickle, and once they realize how empty Tor is, they will be abandoning ship for greener pastures.
My prediction? If BW doesn't have a working rated pvp system and a complete Ilum revamp/overhaul before GW2 launches, they will lose most if not all of their PVP playerbase.
Hopefully they have their priorities straight.