I am of the same opinion I think. I feel like having to scavenge everything in search of more powerful loot tend to lose its meaning and fun as your characters become more powerful.
I also remember that in BGII most of the protection was not from the armor but from the spells (at least it felt like it). What I mean to say is that things that can feel extremely important as you begin the game, like armor class, can become far less important as your characters progress and gain access to more circonstancial means of protection like spells and artifacts.
I also have always disliked the way the characters interact with the items in a strictly utilitarian way in an RPG. It doesn't feel right to throw away an armor you have come to like after 10h of playing simply because you found another which is better in very aspect for your character's stats. I dislike even more when a repair system makes repairing an armor more costly than buying a new one.
This make me think that each item should come with its own skill gauge, so as the longer you wear the item, the more your character become "at ease" with it and therefore increase the efficiency with which it is used. I feel like such a system would make using "obsolete" armor viable for a bit longer, allowing for more characterization.
Finally, I feel that a big part of what make RPGs enjoyable is the rarity of the good loot. Since you usually can't find the perfect armor for your character, you have to make the best usage of what is given to you. It's always so much fun to distribute your items to your party knowing that you make a trade off which has its pro and cons.
PS: I just heard about your project yesterday, and it looks awesome! I wish you the best of luck