> And the pricing of the rare items (e.g. the relics) makes them seem completely irrelevant. You'll get a cutscene before getting a quest reward talking about how you're getting an amazing sword that has been in the family for centuries etc. And then it's slightly worse than what you already have, and the only use is to sell this legendary weapon for a price that'll allow you to buy 10 loaves of bread.
That's a serious story/gameplay disconnect. People often talk about "too good to use" issues, where they get amazing items but never want to use them. This seems like the reverse problem, where for story purposes they're priceless but for gameplay purposes they're useless.
I can think of a mechanic that would solve that problem, and I'm wondering if there's any obvious reason it wouldn't work:
1) "Legendary" equipment/artifacts mostly can't be sold (because there's no market for it). Avert the trope of the shopkeepers that will buy and sell anything, and instead assume the world isn't oriented around catering to adventurers. If you start out with some basic equipment, you can skip the idea of shops selling any equipment at all, and always make the acquisition of such items story-based.
2) Don't have fixed stats for every piece of equipment. Instead, have the stats for any given "legendary" reward always be slightly better than what you have, with strengths and weaknesses based on the nature of the item. So the more quests you do, the better equipment you have. (And as a bonus, you mess with all the people who would normally document the stats of every item in the game.) And no matter what, a quest reward always matters.