My suggestion is to remove "bound to character" from the game, and to instead, make these items "bound to account".
This would help with inventory space and creation of alternate characters.
This would be friendly to casual players and newer players who will join for the expansion.
This would allow reincarnated characters to not carry baggage from past lives, without destroying something that would be useful on another character.
This also works well with balance changes, so that items can then be moved to where they are most useful.