I liked the crafting system in Evil Islands (released in 2000), where you could break down equipment into a blueprint (loosing the material it was made of, IIRC), and recreate it, generally with higher quality material. Spells could also be broken down, and the component runes added or changed to make the spell stronger, have greater range or lower the mana cost (the number and type of rune limited by the item quality and the character's skill).
D:OS 2 will not be doing that, but there are plans to add to the crafting system.
