Hey, there. This isn't my argument, but I think you're badly misunderstanding what madmole said and this means that you and Roland aren't talking about the same thing.
There are three different things when it comes to loot. I'm going to make sure my terminology is clear, but I can't guarantee that others will be similarly clear...
Most weapon types come in three Tiers. These Tiers are physically different items; for example wooden club/iron club/baseball bat or primitive bow/compound bow/crossbow.
Within each Tier, items of the same type have six possible Qualities. These are numbered 1-6, and are represented by different colours.
Within each Quality, items have a randomised Rating for statistics such as armour or damage. For each particular item and Quality this Rating will have a maximum and minimum and will be (normally?) distributed around an average Rating for the Tier and Quality of item. It's possible that a very high Rating item of one Quality will actually be better than a very low Rating item of the next higher Quality, but this will be an uncommon occurrence.
With that terminology clarified...
I think the issue is that what I understand madmole to be saying (and I think this is Roland's understanding too) is that when you make your own items rather than finding them, the items you make will have and average Rating for their Tier and Quality rather than a randomised one. This is to prevent spam-crafting until you get an item of the highest possible Rating. However, as you buy more perks the Tier and Quality of item you can make will increase until you can make top-Quality items of the highest Tier. It's just that the Rating of each of those items will be average for its Quality and Tier.
From your posts, you seem to think that madmole was saying that when you make your own items rather than finding them, the items you make will always be of an average Quality, and therefore they will be vastly inferior to looted items because looted items can be above average Quality.
Do you see the difference?
I think your worries about only being able to make "mid level" or "mid grade" equipment that is "far inferior" to what you'll be finding are based on this misunderstanding. From what I understand, you will be able to make top-Tier, top-Quality items that have an average Rating for that Tier/Quality. Sure, you'll be able to find slightly better items in loot (top-Tier, top-Quality, and above-average-Rating) sometimes - that's the incentive to actually keep looting for that "perfect" item. But the difference between the best item you can make and the best item you can find will be far smaller than you seem to think it will; and the best items you can make will be superior to the vast majority of items you find when looting.