There are quite a few nice looking items out there that don't have 5 star upgrades. Weapons that usually start around 0 Stars and end at 1 or 2. Or even decent weapons that never make it to 5 stars. Here's an example of a few:
http://wiki.spiralknights.com/Fencing_Jacket
http://wiki.spiralknights.com/Big_Beast_Basher
http://wiki.spiralknights.com/Heavy_Hatchet
http://wiki.spiralknights.com/Super_Slime_Slasher
http://wiki.spiralknights.com/Thwack_Hammer
http://wiki.spiralknights.com/Super_Stun_Gun
http://wiki.spiralknights.com/Firecracker
And not only weapons with potential, but armor. Here are some examples:
http://wiki.spiralknights.com/Fencing_Jacket
http://wiki.spiralknights.com/Groundbreaker_Armor
http://wiki.spiralknights.com/Spiral_Scale_Mail
http://wiki.spiralknights.com/Blazebreak_Armor
http://wiki.spiralknights.com/Vitasuit_Deluxe
http://wiki.spiralknights.com/Scarlet_Shield
http://wiki.spiralknights.com/Green_Ward
http://wiki.spiralknights.com/Swiftstrike_Buckler
http://wiki.spiralknights.com/Cyclops_Cap
http://wiki.spiralknights.com/Mining_Hat
And there are even more items out there that could use upgrades to 5 stars. There's lots of potential out there. If Three Rings makes good upgrades for these weapons and the rest that are left at low stars, people might make and use them.
the problem is with ragecrafting mainly, u need to address that first before something like this can be applicable, or else we have the same issue we had with the haze bomb b4 they updated it