I would actually suggest that having loot-gen cap at say 20th level, and any chest 20+ would drop other things players might want, additional commendations for Eveningstar gear, perhaps even mix "challenge" (both evening star and Cannith) mats into chests, as well as a means to quicken the process for upgrading older epic items.
Doing that would open more doors, for example, it's better for a player to have a realistic possibility to get an epic Templar's Justice, then it is to try and revise the loot-gen system to replace or even overshadow the Templar's Justice, this making the weapon and the process that was put in to upgrade it, a waste of development. Beyond that, it really dismays the players who took the time to acquire it, it makes them question why they even bother, if you are just going to make into vendor trash with the next update. It removes the incentive to put in time or effort to attain these things, and that is a game killer right there.
I guess the question is,
- If you upped the Evening Star Comm drop rate so that it was perhaps doubled.
- Put in a Trade method to consolidate shards/seals/scrolls into one item, so that players could acquire one "item" in volume to use to upgrade their items into epic items.
Would you need Epic-Loot-gen at all?
Have all the gear post 20th be Named/Raid or Comm/Challenge gear, and let Loot-gen be heroic building block gear, I think would make for a better game for everyone involved.