Indeed. It is way too long. All items in shops after level up can be useless junk. So you must wait 1 hour to uptade them - it is annoying.
What do you propose? 15 minutes? 5 minutes?
I think you are conflating 2 things here. One is that most vendors sell crap apart from their unique items. This is certainly intentional as there are fewer vendors selling epic gear than there were and that is fair enough for a prison island.
The second is the restock time. For me an hour is fine. It takes me ages to go around all the vendors anyway. I'd be annoyed if by the time I got back to the first they'd restocked the thing I decided I wanted to buy while I'd been checking out the others.
I don't do it much but I must admit I have left the game running while I sleep/work/go to the pub on the off chance of an epic bow turning up in a vendors stock. Sometimes it does.
Crafting will help when it is further implemented. You can craft weapons and potions but not much else (armour etc) at the moment. When it is you won't get stuck with level 3 boots
