A lot of mmos do this. The only thing WoW pioneered, in this aspect, is retaining the look of old gear via transmog. No other mmo allows the use of old gear once an expansion is released, that I am aware of. Final Fantasy has a slight spin on what Wow did. I've played Rift, Wow, SWOTR, ESO, EQ, Tera, Wildstar, FFXIV, and a few others. None of them really let you use older gear for the new stuffs. Essentially, we grow as the game grows. Can't really convince people to use new things if they hoard the old stuff.
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The gear I completely understand. It's the locking out of activities that I disagree with. Why can't players continue to run the levels they had in the vanilla game? Why is the exclusion zone capped for non dlc buyers at 7 when last week they could run it at 30? Do other games lock you out of the higher tier missions as well?