I started playing in I think 2010 or so and haven't played for about 3 years so it's been a while. I've had extremely fond memories of the game although I eventually got bored/frustrated with some aspects of the game.
Anyways, I'm just wondering why Three Rings or whoever balanced the game never bothered to balance the gear. Some weapons and armour combinations are blatantly superior to others, for example I remember loving my weapon the "Wild Hunting Blade" but it was always shit compared to the "Flourish" against beast types (although the Wild Hunting Blade was meant to be specialised against beast types). In fact it was probably the worst weapon in the game. And there's also the chaos set being outright stronger than the mad bomber set. And tons of other instances of horrible balance which I can't even remember.
I think if Gray Havens focused on balancing the gear (it can't be harder than simply changing numbers?) then Spiral Knights would be in a better spot than it is now.
Yes, the equipment needs lots of balancing. Balancing would make the game more attractive to gamers, although it alone would not be sufficient to make Spiral Knights popular.
The main problem is that new items tend to be more powerful than old items, and the old items are not updated enough. For example, WHB's damage bonus hasn't been changed since the game launched. Damage bonuses were much harder to get then, so it was somewhat valuable then. But now we have so many sources of damage bonus, including Black Kat and Chaos, that they swamp WHB's bonus for any experienced player.
By the way, if you started playing in 2010, then you started playing during the beta period. Which is long before Flourish-type swords were introduced. I'm guessing that you started playing in 2011 or later. But that doesn't change your point.