[IDEA] Item upgrade system

Yoo, Katy got an idea
Since I'm pissed of finding only wiz/tao items, I was thinking what to do to cure my hero from this "curse".
It's simple:
Instead of mobs dropping items, u could make them drop essences like WarLord essence, Ancient essence, Angel, Volcanic, Holy essence.
Having lower lvl item e.g: WarLord, you could use Ancient Essence to upgrade WarLord into Ancient item like this:

WarLordNecklace + AncientEssence = AncientNecklace

This way, everything starts with lvl 100 kit. Players have to find lvl 100 kit and hunt other caves, which don't drop items anymore, but essences, and upgrade that lvl 100 kit.

Having only 1 essence to upgrade 1 item allows you to make those essences as rare as items should be.

What is more, new players have to hunt ALL caves to upgrade their items. Now they go straight to lava and I see a guy 1k with better kit then me LOL (mad Katy)

I was thinking about defects but couldn't come up with any.

Please comment

sounds like a really good idea id love to see that implemented