The gear may seem overpowered because Strategus just started, but in a few weeks it will be nothing.
This. Although, hopefully in a few weeks factions will all have good enough gear as to make this mechanic obsolete for all except non-factioneers and people who got beaten and booted over to the other side of the continent.
It'd make more sense to scale the gear to that of what the rest of Strat is currently using, but that's way too much work imo, as this works out nicely as it is.
Funny story, I didn't know this mechanic existed and was desperately equipping my army with lederhosen, cudgels, and rocks before Bale kindly told me to stop being retarded.