Yes, only on the armor. No helm upgrades.
Regarding the stat bonus, I figured it would make it more interesting and desirable.
In Pocket Legends we had dragon vanity sets which gave stat bonuses. Eventually it was decided this was a bad idea because after some time everyone was wearing the same exact vanities and we all started to look alike. But in this case, you can use the particle gem on any vanity of your choice, so we will all still be able to have our customizable looks. So I don't see this being an issue.
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