Yes it is heading in the direction of C-native, which is clearly at least one of the intentions. A huge part of the draw to keep playing the game is being able to progress your character through levels and now ultimately heirlooms. Remove those things and there is no carrot to chase, and despite how much people complain about hating the grind to be competitive, the game will become boring.
I get bored playing native multiplayer pretty quicky. Its fun for a little bit then I'm burned out for a long time. C-rpg will become just as boring without any character progression and just customizable builds and fashion options.
Unless the devs got something in mind as a meaningful substitute for the current sort of character progression in this route toward nativizing it, I don't see the mod being nearly as compelling to play.