Agreed on the illogical equipment (awesome link)
One thing I hate is the lack of variation- More often than not, your saving to get a more powerful weapon, or a shield with better defense. And every single piece of equipment is essentially exactly the same. What would be cool is if you could base the appearance of equipent on various templates and then build the stats from there.
Also, an idea that me and two friends (not mentioning names in case they don't want to be heralded) is that you dont buy equipment per se, but you buy modifiers- say you have 4 slots in a sword, 2 for its attributes and 2 for its cosmetic appearance, and you can equip a strength and fire modifier into the sword to make it more powerful, and light and futeristic modifiers to make it a lightsaber.
That post lasted much longer than i wanted...