It might be good to use visual references for this one - just trying to explain visuals with words can make for a really inaccurate discussion.
there you go
wear and tear done right or a good in game example of done right would be the goblin scimitar or let say crit helmet that one has some bumps as well though it is a bit shiny and not everything needs to be so bright and shiny. Glowing shield looks cool as well, stuff like that.
If i find a used items it should be used not brand new and a few more darker armors would go along way.
When it comes to game world i would say the downside is no day and night cycle! The rest i like just fine and is done really well.
