"Trap gear" is bad.
That is to say gear that has a tool tip that makes it look fun, but is actually just a colossal waste of resources that doesn't do anything out of the ordinary. This is bad because newer players and hipsters see it and try to prove that it's good and then we have this whole mess where people are angered by how bad mad bomber is. So get rid of them.
Instead of the false pretense of diversity, we can just switch things around bada bing bada boom and....
Chaos remains.
Black kat remains.
Seerus's mask remains.
Everything else can just go. It's all pointless. One armor line is all we need. Everything else gets turned into a copy of itself as costume armor, can still be crafted, etc. and any UVs get put onto a chaos set and given to the player.
There are two additional armor sets that should remain:
Dragon Scale (Compound 42: The armor set)
Sacred Firefly Shade (FSC for gunners)
Otherwise suggestion is good and balanced.