Your argument has no merit. The only contract you have with Turbine is if you're a VIP, and even then that contract is one of payment and can be canceled by you at any time.
We do not own our characters. Turbine does.
We do not own our loot. Turbine does.
As all of these things are owned by them, they will do as they see fit with their things in their pursuit to better the game.
If you rent a car from your neighbor, and he decides to downgrade it )or trade it in or paint it or whatever), you have little to say on the matter. You can choose to rent the new and/or different car, or you can choose to stop renting.