I started to notice this issue with gear near the end of the first island, as I saw some of my very rare and powerful weapons be outpaced by more common weapons that were 1 or 2 levels higher. Then at the beginning of the second island it got even more noticeable.

The problem with this is that it puts a HUGE focus on equipment. They're what dictates whether you're successful or not, because the numbers change so quickly. You also don't really get to "enjoy" some of the more unique items, because they become weak so soon after you acquire them. A slower progression would feel more natural AND make upgrading your equipment a choice rather than a requirement due to much bigger numbers.