I would support this.. however I think its more important near endgame (ie, lets say they ultimately cap level at 99, then is when the equipment is most important).
Sweating the pinks and purples too much now is just wasting time as we will inevitably be ditching the equipment for new/better stuff after another update or two. I would love to see the loot system similar to WoW. I know its blasphemy here to compare this game to WoW, but their system just works well. Just about any mob can drop good items, but only the bosses can drop the truly best equipment.
*Edit*
I mean the thing right now is people have no incentive to stick around and fight the bosses (other than just trying to get to the next level)
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