There are many people who are very upset that the Ascended items and Infusions have the same difference in stats as Rare->Exotic has. And I agree with them. It sets the bar higher and the fact that these things can only be obtained through a form of gated content is against what ANET has been promising for many years now.
With that said, I enjoy the Fractals, it’s fun and many of them are honestly inspired. My proposed solution is to change it so that Exotics are still the top tier items. Ascended and Infused items will only effect the Fractals and NO OTHER AREAS OF THE GAME.
How do you accomplish this?
Keep the mechanics in the Fractal dungeons which require some form of passive protection in the form of an upgrade to your gear. This can scale as infinitely as you like. As you get to higher levels of the dungeon you need more and more protection but not stats. The Agony mechanic does this, I suggest mixing it up a bit with other similar mechanics just for flavor and variety.
Make Ascended gear similar to how it was in Guild Wars. It’s a passive upgrade that only negates some potentially severely dangerous thing. Spectral Agony would nearly one shot most characters, getting your gear Infused by running a mission made it so that Spectral Agony did pretty much nothing.
This can be accomplished by reducing Ascended items down to Exotic level stats. You then adjust it so that an Ascended item is merely an upgraded Exotic item which offers stats that grant some form of protection against the negative effects of Fractals. Infusions would be more of the same. This creates the gated content that players who enjoy grinding (the group dubbed ‘hardcore’ by the community) love so much without impacting WvWvW or PvE as the effects that Ascension and Infusion provide protection for simply do not exist outside of Fractals.
Now, to make sure Fractals are still accessible to those who do not enjoy gated content or grinding (the group dubbed ‘casuals’ by the community) you simply make it so the first few difficulties do not apply the negative effects or the negative effects are not as severe. Say levels 1-5. At that point you will need Ascended gear to negate the negative effects of 10-15.
Ascending gear could be accomplished by putting various Fractal-only drops and rewards (such as the Fractal Cores) into the Mystic Forge along with an Exotic/Legendary item to be upgraded. Infusing gear would follow the same process, just requiring the that the item be Infused instead.
Alternatively Infusions could be effects applied to Ascended gear, sort of like a second upgrade slot. As stated before Infusions wouldn’t grant any stats that are not directly related to negating some impairment within the higher difficulties of the Fractal dungeons.
As for making the ‘gear treadmill’ you simply make higher quality Infusions which provide greater protection. I believe this would be best accomplished by adding more negative effects then Agony. Perhaps an effect that reduces your damage, healing, increases cooldowns, or causes you to take more damage. Each of these effects can be, theoretically, infinitely increased requiring greater and greater levels of protection.
As for the rewards for delving deep into the Fractals? Unique skins, and mini-pets. One could even add a special Transmutation Stone for transmuting Ascended items, this should help increase Gem Store usage.
I thank you for your time in reading this and apologize for the somewhat unstructured nature of the document. Writing isn’t my forte. :P