Looms or no looms, the game mode will be awkward in not allowing you to use your "identity" of items, and as a person who has a main of an archer, out of all the bows only 3 are not garbage... and something tells me that those bows will not be easily attainable like all top-level stuff in this game mode.
While the game mode can be fun for a bit, the 60-90 minute per round gig will be murder for ost players, and this will likely turn into a DTV (few players), especially since if you are not using your stuff then I don't see how upkeep will factor into it, and thus the xp/cash reward will be abysmally small.
I can understand fun, but I can see where Tydeus is coming from. You built your character to use certain things, and being handed a cookie cutter platter instead of your usual custom toolbox is going to be putting off a few folks.