@Boss Gitsmasha
I thought GMs were supposed to be storytellers first and foremost, to help create an engaging and exciting tale for the players to take part in.
That's your choice, of course. Personally, I prefer to be more or less equal parts storyteller, abjudicator, audience and world engine. And I've played with a few "storytellers" who seemed to view players and their actions mostly as hindrances to their perfectly-crafted plot. So why don't we leave out the name-calling and get back to the debate?
When was the last time you were angry at the universe for making your difficult-to-acquire golden knife much worse in cutting quality than a regular steel one? Not everything that's more difficult to get is automatically superior for every wielder in every situation.
How about simply turning the point of view around: Don't consider it a downgrade that makes the item more powerful, consider it a character trait of a 3600XP character that can turn a negative condition into a benefit.