I agree with Anstalt. LOTRO's system is fantastic, and should be a paradigm for MMOs looking to implement a high level of avatar costume customizability. It might seem a bit too free-form to completely separate your equipment and your appearance, but on the other hand, this is already done with tons of games (like the Final Fantasies, where your characters have a characteristic design that doesn't change as you improve their armor). In my experience, it doesn't do anything to de-incentivize the pursuit of better gear, but it does give you a greater sense of ownership over your character. Also, if W* goes the FtP route, for-sale cosmetic clothing items are a highly lucrative products that don't have any effect on game mechanics, so it's good from Carbine's perspective too.