I don't realy like degrading gear, but permanent loss is unacceptable.
It think this is a horrible idea, as you have to search for the gear with the right stats then it is gone after some time and now you have to search for it again.
Yes, gear could be cheaper, but you would need more vault space to hold the spare gear. Players who have more vault space can stock up on replacements, while others have to go for a suboptimal one.
It won't solve anything. It only adds more frustration.