Guild Wars 2

How about giving players the ability to create their own custom outfits, by combining their favorite pieces of armor? Once the new look is complete players can use the Outfit slot to store it and keep the specific regardless on what actual gear they wear, similar to how all other Outfits work.

The benefits of this process are the following:

Leveling characters don’t need to change their looks every 2-3 levels to match the look they want. Get your white starting gear, transmute the skins you want, put the result in the Outfit slot, and your armor will stay the same no matter how many different armor pieces you use (just like how outfits work)

If you use the same armor on multiple characters, for example Ascended armor, you can set a look for each character, store them in the outfit slot and keep that look when you send the gear to another character. So your Necromancer can continue to have a different look from your Elementalist, even when you swap their Ascended items around.

In addition, this will allow players to transmute Ascended armor with RACIAL skins and be able to transfer the armor to alts, the “RACIAL” armor will be in the Outfit slot so the armor can be transferred freely.

But Arenanet is making money with transmutation stones.
With your system they lose money.

I’d rather use my old Town Clothes to make a custom Outfit.

And they still need to reinstate the key-bindable instant-swap into and out of Outfits that we used to have for Town Clothes.