With the game being full loot and losing all your gear upon death, I don't see alot of people investing time into making top end loot for themselves. With the current system for travelling most people will be dying far away from their bodies. I would expect your body to have a small timer to return to it to gather your loot. Even if you do get back to it all the gear is damaged. How much damage I haven't seen. I also haven't seen much on repairing. With all that in consideration I see alot of people dressing like the early days of UO, basic gear that you can throw away. I'm sure there will be those that want the high end stuff and those will be the guys getting chased by the pks lol.
The problem you are talking about is solved by giving the craftsman the ability to create equipment that does not fall upon death, equipment tied to the soul. The equipment will not last forever and will continue to wear down with use just like normal equipment, so crafts will become more relevant.
It would be a great detail if only for artisans a system parallel to the enchantment system was created, such as a runic system, so things can be derived from the enchantment system to this system so that it is not so overloaded.