Everyone has there own desires from a game, so I would never presume to say how something "should" be. But I would like to cast my vote into the general pool.
The Aesthetics of my gear are all important. I (personally) highly dislike looking showy with my Sith. The concept that my gear should visually represent my Level / Achievments is for me a negative. Palpatines look belied his power in RotJ, and that is the "style" I would like to emulate if I could.
The SWToR Orange gear concept suits me perfectly. Let me choose my look, I don't care if other players think I'm a noob!
(I don't really PvP often, but I can understand PvPers wanting to be able to judge there opponents abilities with a look. so I can see the difficulty for BW there.)