Yeah, I realize now that my math is off by some degree. At the very least the axiom regarding earnings is wrong, since x1 is only 50 gold per tick and the ticks are once a minute.
This is also incorrect. The first two ticks occur at 30 second intervals, after that it is then 1 minute.
Slightly lower upkeep?
Ideally, everyone could use anything that they own and all armor and weapons would be properly balanced. That way there would be a trade-off rather than one outfit being definitely better than another. Increasing the weight of plate, for example. Then if you chose to wear heavy armor you would have the disadvantage of significantly lower damage and mobility, to counter the significantly higher defense. Choice of gear would be determined by personal choice and playstyle rather than what you can afford. Really, upkeep is just a result of the devs being lazy (or incompetent, I guess). They don't want to deal with properly balancing gear, so they just make the good gear less affordable.
This is already true. You can get on the battle server everyday and see it. Tons of horrible players wear heavy armor(always gothic plate for whatever reason) and continue to be bad. Great players dominate with or without armor. Ser Butts owns with his horrible gambleson, dexxta owns with that corranzia armor.
It already is a big choice to wear heavy armor or not, it slows you down a disgusting amount. Try it out. Most people don't want to realize that they are simply not good because, well, they are not good. They would rather point at the gear of the people who killed them. "Man one day I'll have that weapon/armor and I'll dominate just like them!", then you get there and realize woah nope! Not that easy. That is why I play cav

No really, whatever server you play on, pick whoever you think is the best armor/gear whore and get their exact gear. Use it, even for a brief time that you can. See if you end up 23-2 like they do.