I created a video on my thoughts kind of ad-libbing and saying them out loud, but I would like to expand on it.
Referenced video:
https://www.youtube.com/watch?v=uqHzf2y4dNYTL;DW: The main fundamental problem with MMOs can be listed as two things that have one single root cause: Vertical gear progression creates unfair PvP/Easy raiding and kills player retention.
Vertical gear progression is a band-aid fix to keep player retention that has a contradicting theme, which de-stabilizes balance for new/returning players making player retention outside the main player-base impossible.
Pre-50 Issues:
Prior to max-character-level (or what I refer to as "end game content") the balance lies within the absolute chaotic imbalance. Now, I understand that this is more reminiscent to "real life" where you will meet characters who are stronger, more experienced, and wealthier than you and some that you have above them. This can be fun and interactive gameplay, but when you have core mechanical systems like caravans, sieges, etc. you can see the issue of gear/level discrepancies in a video game and can predict how players will react.
"Oh this is complete bull****", "this guy is level 40 attacking a level 10 caravan, what a loser", "This is stupid and not fun.", etc.
In my example it's a bit hyperbolic and I think if a level 40 is attacking a level 10 caravan, then by all means, he probably is going to win that encounter. But I want to at least address one thing: if there are ten level 10s, and one level 40, I think that the level 40 should have a chance to lose that battle. And that's where GEAR progression is really terrible in MMOs. You are essentially Pay2Win even in a non-P2W game because you're paying time and gold in order to get gear that allows you to steal resources from other players that make you unkillable.
So the direction I would like to see from Intrepid is that gear is not king and that skill is king. It should be hard for ten level 10's to kill a level 40 player, but it should be possible. There should be counter-play in the leveling process. Not only in 8v8's and raids, but there should be counter-playability in 1v1s. This means that even if you lose in the triangle of power, you can still survive an encounter if you spec the right abilities and use the right timings, etc. I don't think the "Rock, paper, scizzors" approach is necessarily wrong. I just think sometimes Rock should be able to escape paper when played absolutely skillfully and that paper can avoid scizzors if it's moving through the wind and the person with scizzors has bad hand-eye-coordination.
Post-50 "End Game Content" Issues:
If you were to put a soft-cap or hard-cap on gear progression I think a lot of these issues would at least be quelled a little. An example of a soft-cap would be like item-enchantments, where it could get stronger potentially, but the amount of time and resources it would take would be very costly and it still benefits the players who put a lot of time and resources into the game. That is actually a cool game mechanics that rewards players for hard work. Doing the same dungeon/raid over and over and over again until you get a new raid/dungeon that gives better and better gear creates "gate-keeping." I explain in the video why gate-keeping is natural, but basically it's because the people at the top are maximizing their time and minimizing their pain of teaching new/returning players mechanics or don't want to prog through raids/dungeons and will only pick the best of the best player-base, which again, kills new/returning player retention.
It seems developers run into the issue of "How do we keep player retention? Just give them better shit." and it's a slow cancerous band-aid fix to an infection that won't go away with just a band-aid. Variable progression (Nodes, XP debt, etc.) is a good way to combat this failure of a system in gear vertical progression. However, if you simply just allow gear to be king and make it so positively rare to get end-game items and materials, you will lose the casuals and Nodes will no longer be variable progression, there just won't be any progression with no player-base.
Now, I don't think Ashes is made to be "balanced" but you have to give some semblance of balance to be successful. There needs to be a balance team who looks at all these things and a system designed around this failure of a system. I'm not good at math, otherwise I would sign up. My skill-set is figuring out where problems exist and trying to find ways conceptually resolve these issues. So I have no idea how to fix this issue. But I don't want Ashes of Creation to fall into this pitfall of a trap.