I dunno. If I got a pair of blessed bunny slippers I would want to see them in all their glory. :p
I think having cosmetic slots would be the best solution. Let some players enjoy their mishmash but let other players use vanity items.
Well I was more thinking along the lines of something you could click on and off in the character selection. So people could choose what they wanted but weren't locked into anything they didn't want.
Also curse you fuzzy bunny slippers you have undone the point I was trying to make with your fuzzy adorableness! *shakes fist*
