But then, thinking about the OP, how do you actually gear up and is this just going to create the huge gap we see in nearly every Korean-styled MMO? Because those situations are 'unfavorable' for us at minimum. Basically, if you say 'grind gear', and then you can feel the gear, but then you also have to upgrade it, and enhance it, and have 10+ slots, and customize, across all players...
Steven likes the word "dynamic", so what if we had dynamic loot tables? Assuming mobs will in fact get material drops in them, how about smth like this:
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mobs have 3 types of loot groups
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materials (both specialized and general)
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full gear
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horizontal enhancement items
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when killing mobs at your lvl - gained xp is normal, gear drops are normal (normality figured out through testing), materials and enhancement are lessened
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when killing under your lvl - xp is higher, mats are higher, gear and enhance is lower
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over lvl - xp is lower, enhance is higher, gear and mats are lower
At release people are farming mobs of roughly their own lvl and get gear for that. The gear allows them to fight above their lvl, so they can now enhance their gear. Enhanced gear makes the fights easier, so they level up to those mobs faster, enter their lvl range which enables their gear drop tables. Any unfilled slots of gear can be filled by fighting weaker mobs solo (i.e. on people's additional time) and crafting it.
Depending on the finalized leveling speed (cause it sure still feels insanely fast), skillful players could use the enhancement they got for killing stronger mobs on the gear they get from said mobs once they get into their lvl range, rather than on the previous tier.
This suggestion might heavily rely on proper horizontal mob difficulty. So, say, your group is lvl15. You're fighting low 20s lava mobs. They're giving you fire resist enhancements. While you were getting enough of them for your entire group, you've reached lvl18-19, so now low 20s is the "gear drop table". So now you have a choice, do you use the enhancements, make the fights easy as hell and grind the higher tier of gear real quick, or do you keep up the challenge by fighting low 20s ice mobs, who'll still be giving you gear, but now you don't have proper resists against them.
And so, that kind of situation could only exist if switching mobs horizontaly is a viable difficulty choice, rather than saying "well, the only challenge for us is when the mobs are several lvls higher than us". Ideally this would depend on party's skill builds, which would in turn need to be fairly limited in their switchability (so, none of the current "I can switch my entire build on the fly for no cost"). So if your mage is a fire one, your summoner chose an ice elemental (which is weak to fire) and your bard has earth-based buffs (if we even get that kind of granularity in our buffs) - lava mobs would be somewhat difficult for you before you get resists to them, but, after those resists, switching to smth like "wind mobs" would still keep the difficulty relatively high, even if the mob lvl is now not as higher than yours as the lava mobs' was when you started fighting those.
I'm not sure if I'm making any damn sense with all of that, cause I feel like I got lost in my own thoughts along the way

But my point is, would a dynamic loot table system work for this? Has any other game tried that?