I was thinking it would be cool to have a machine to recycle armor in. It wouldn't give back all of the materials used in it, heck maybe it won't give back any just crowns, or some special material that can be traded for other materials at another vendor. Since everything binds on wear inventories are gonna get pretty full as you get more stuff, so this would be a way to get rid of unwanted junk.
You know you can sell bound items to the NPC vendors for crowns already, right? (So long as it hasn't changed recently)