I agree with you on the multiplier, although not the upkeep system.
Mind that I am not advertising the removal the upkeep system without replacing it with nother equipment limitation system.
My personal favourite would be a certain item value budget every character can equip, which can be raised by spending a few skill points. Something like that. Persistant equipment, no "gambling", no worries about losing money, and the character's effeciency is completely dependant on the build, and not influenced by external factors like playing in a big clan (= more won battles = higher upkeep budget) or the marketplace (sell one loom point and upkeep is useless on limiting you in your equipment choice, for quite some time). But I bet there are other solutions, too. That way you either have well equipped, poorly skilled characters, poorly equipped but well skilled characters, and balanced character. More variety, yay! Wanna ride all day on a plated charger, wearing plate? You can, but you will either be slow or weak as fuck. (This change would go hand in hand with a slight level cap increase, I'd say 3 levels more or something like that)