Indeed, the loot system in GW2 is abysmal but it has no fix.
Things is champs give appalling loot ... regular mobs outstanding. The game is literally swiming in an abundance of exotics, which makes rares ... well rubbish no one really cares about except for ectos.
Regular mobs shoud have given trash items with a rare chance of a blue.
Bronze mobs -> Blue items with rare chance for green.
Silver -> Greens, rarely yellow.
Gold -> Greens, tiny chance of yellow, very rarely exotic
Boss -> Green same as above but slightly better odds.
Dungeon items should have been just skins you unlock and can apply to any item of their type just for looks, preferably an unlimited ammount of times to increase their appeal and avoiding that using it on anything that isn't a level 80 exotic meant wasting it.
Of course nothing can be done now, it would be cripling for anyone starting the game now in comparisson to the rest of us who are not just equiped but swiming in exotics. And if they removed our exotics, I can only imagine the flamewar that would ensue, lol.
Some mistakes can't be fixed. We'll have to live with this.
The game is only four months old, it's not too late yet. If you plan on the game running 5+ years, then there is still plenty of time to make changes. Most of the players that will ever play this game, still haven't played yet.