Yes, he has a heirloomed item, which is the one he heirloomed. If he wants a different item, he has to go to 31 again and retire. This increases the value of heirlooms and forces you to make a well-informed decision. It also has to be said that heirloomed items are not essential for success. They are a nice bonus for dedication, nothing else. You can still reroll a diff character, sell your heirloomed stuff you no longer use, and continue to play with regular stuff.
As for a money sink, I would welcome special looks for the regular items (retextured, maybe some minor model differences) with the same stats as the regular stuff, but a much higher price.