The reason gear is so over priced (and has been for years) is the horrible drop rate. It is the old formula of "supply and demand". The drop rate of gear is kept horribly low so as not to compete with SC items. This is also why enhancement rates are so bad.
Just imagine if 50 blue weapons dropped every other time that a boss monster was killed. It would glut the market with 50 blue weapons. Also, most of them would be still be trash.
However with the current drop rate, you still get the same percentage of trash weapons but the drop rate is so bad you are luck to get a trash level 50 blue weapon.
The same is true for all drops. Most of what you get is trash. But the drop rate is so bad that you're extremely lucky just to get that.
Then it cost a small fortune in real cash to enhance these drops. I'm lucky enough to have a full Point and Strike jewelry set. But there is no way I'd ever sell it now. There is no chance to ever get one again.