Aww that's a painful topic for many players... You've run into one of the major issues with the game.
It's not even every 2 levels - vendors receive better inventory every single level.

The problems are:

- Armor stats of gear increase too quickly each level, so you have to get new gear very frequently to be in good shape. You have to do it much more frequently than DOS1.
- Vendors carry a ton of good gear (legendary, unique, etc.), and on one hand that's good, but that really makes "legendary" and "unique" things quite meaningless, if you have to replace it almost every level, and they are always available at vendors. In a good RPG the player finds rare gear from exploration and questing, and it lasts a while if it's really good. I miss that. Games like Dragon Age or Elder Scrolls have that.
- The devs really castrated the crafting system. In DOS 1 crafting was so good that the best crafted weapon was almost always better than anything you could find. You could craft a weapon and enchant it in several different ways, and it would last several levels. And rarely I would find an even better weapon from loot, which was really 'unique' in the true sense.

I miss good crafting and exploring for good gear that I can actually use.