Guild Wars 2

I’m still not sure if this is a serious suggestion or some kind of pun because of the inherently stupid nature of items released in the gem store lately...

I guess even more people would purchase some serious items, e.g. there’s a total lack of useful armor and weapon skins on the TP.
I’m fine with some stuff in towns - the latest hats are already quite borderline though.
You can’t transmute town stuff to combat armor because professions are supposed to be distinguishable in the "real world". Same holds true for "invisible" armor (i.e. running around naked). GW2 is an MMORPG, they have to keep immersion in the game and it has to be consistent within its universe (i.e. running around naked will likely get you killed quickly).

tl;dr: no.