There are several issues around this, some people just say use the oricalcum tools for everything. The main problem with that is people who are farming are also trying to save money.
There are people that claim an advantage when leveling in using a lower pick to gain XP, even though the material is ruined. I don’t really see any advantage in that. With the change to make tools account bound there should be little issue in handing them to a lower level character.
When I find ruined ore, ruined plant fibre or wood in my inventory I get p—-ed off. Ruined whatever isn’t fun. To be honest I’ve never heard of ore being ruined, it’s all useable, except in games. Seems some games developers reuse stupid rules rather create new ideas.
Just make the gathering fail and install an error message that someone has used the wrong tool instead.
Oh, and no OK button, just fade the box out after a few seconds.