Im not sure what its called..(Reforge...?..Eh) But i think if you have extra equipment like and old sword that is bound to you , you should beable to break it down and get the materials from it , not all of them that it takes to make one but maybe half or so , just a way to clear inv. space and get more mats for the Market :3
Now, I'm not saying this is a bad suggestion. I like it. But the main reason the market is there is because Mats are hard to get sometimes. People will abuse this 'Reforge' system and everybody will have 4-5 star equipment in a matter of days.