I think transmogrification like wow is a great idea, so we can use all armor and weapon that are lowlvl too, to individualize our charakters.
I'd rather have slots with multiple wardrobes, like in LOTRO, or a system that unlocks "styles" like in DCUO. The idea of Transmogrification makes the customization waaaay too complicated for my tastes. I bought this game looking at how awesome the Female Monk looked in the last few tiers of armor. I would much like this look back, but I can't achieve it without wrecking my current gear.
Character customization is basic, specially when you play online, its anoyying to have a party looking exactly the same, bald, beard, all dressed in blue (monks of course) while the guy next to you dies in one hit i mean.. just no.
I am so overwhelmingly in favor of this... glad to hear it is on the way! I recently came back to the game and was hoping to hear something about this feature. Thank you to the OP and the official response.