The new system lets you create a character the armor that does exactly what you want. If you're interested in the bonus then you can stick with one set and look that way.
If you're not particularly interested in any of the bonuses, you can create a set that looks the way you want.
This armor bonus motivates people who use it to upgrade as soon as they can. I didn't bother to upgrade my padded armor until it was blue. I'm going to upgrade my assassin set as soon as I can.
It costs a buttload of cloth, glue, and especially leather. I hunted bear in the snow by home way before I should have because I needed leather. I survived with a quarter of my hit points intact. Some people would say that's just barely. I say that is not the point.