Cameron of Random Battle tells us that EQ2 will allow you to wear purely decorative armor, replacing the graphics (but not stats) of the armor you would normally wear. Go for the best stats, but cover it with your favorite look.
Awesome. I am also looking forward to Chronicles of Spellborn’s plan to decouple appearance from stats in equipment. Of course, I am spoiled by City of Heroes, where you can pick your look at any time (but half the powers hide it anyway).
If you are committed to the standard loot-centric model, this is a nice way to work around having everyone look the same. I wonder if it applies to weapons; I have this image of someone using a very fast weapon but showing a huge slow one, so it does the giant hammer swing at lightning dagger speed.