I suggest that one of the DDO designers be assigned to the large project of going through the entire list of all named items and adjusting them to make sense within the current status of the game. (Naturally, other people would need to assist from time to time). There have been a lot of changes since the game first came out, and a lot of items are in bad shape for a variety of reasons.
Why do it as a single huge task instead of a bit at a time?
1. Because the value of items is in comparison to competing items, so there is a lot of coupling between different areas.
2. To avoid change whiplash for the players. Each time a change comes out, players will want to adjust their gear loadouts and figure out what items to use now. They won't like being put through that more than is necessary to get the fixes in.
Common reasons an item might be bad:
1. It was flawed from the start.
2. The game design has evolved since then (either specific obsoleting items, or just overall power creep). For example, the improvement to temporary spell boosts has devalued all items with permanent spell boosts.
3. The level cap has gone up, so it no longer makes sense to be so hard to obtain.
Ex-endgame items are a particular thing to watch out for: back when some top-level items were released, it made sense for them to take a long time to acquire because capped characters had nothing else to do with their time. But once the level cap moves on and new better items are introduced, it no longer makes sense to put in the time for the old stuff. In those cases it's worth considering increasing the drop rate for ex-endgame items, such as scales from Gianthold Tor or shield fragments in Orchard. When an item needs to be "improved", that doesn't necessarily mean the item itself must become more powerful. You could instead work from the other direction and make it easier to obtain, such as by increasing drop rate, adjusting minimum level or binding, or even making the corresponding dungeon area faster or easier.
Note that to minimize player dissatisfaction, the emphasis on adjusting items should be to improve bad ones rather than weaken those that might be too good. It just feels worse to look at something in your inventory and see something that's lost specific features it once had.
Not every item needs to be attractive to every character or even any character, but presently too many of the named items have no role in gameplay except as a distracting waste of space. Soon I will reply with some more detail on the issues.