MMO? You've never played D&D before, have you?

Plus, you'd have to sink points into crafting (and neglect another skill). Hell, restrict it with item and character level. Restrict the best recipes to those who have a BASE crafting of 5. There are tons of ways to balance this, but instantly going NOPENOPENOPENOPE is hardly an answer.

Every damn time I see the term "MMO mentality", I get the feeling that people just love throwing around derogatory buzzwords. Gear progression is part and parcel of RPG games, as part of character development. Try using a level 5 sword in Hiberheim and see how well you do compared to wielding a sword of your own level. It's present in PnP, it's present in BG2, it's present in Arcanum, Gothic, Ultima, IWD, Divinity games...