We absolutely need transmog for armour, even though I think it hurts some of the thrill and cost/benefit analysis of finding near gear. Somewhat tangentially related, we need to be able to alter appearance of PC mid game and alter companion appearance in character creation in the same way that we create our own guardian.
The "thrill" is the reason I think the system should be more complex than "transmog anything," even though it takes more work. If you could merge armors, there would be a built in cost (because one armor goes away) and you'd need the armor to start with. When you merge armor, you would pick which armor provides the appearance and which armor provides the mechanics. You might even want 3 toggles for armor type (clothing/light/medium/heavy), appearance, and enchantment.
