It's better if Green isn't the default meta, trust me it hurt Division 1 immensely and it's also a huge problem that unfortunately can never be fixed in Diablo 3.
They absolutely need to fix the loot. I also disagree that Skill Tiers were a bad idea, I think it was a very good one but it needs more tweaking; Skill MODS barely do anything now, and the baseline function of most skills at Tier 0 is garbage to the point where a lot of them aren't even useable (the personal shield isn't even remotely viable under Tier 3 for example...)
And of course a lot of this is part of their decision to make the franchise an RPG first, shooter second (which is a whole other huge design flaw IMO but also a separate topic) but we're stuck with this so gotta work with what we got. I think a much better approach would be to keep the skill tiers but buff up tiers 0-2 to at least be serviceable, and remove RNG from skill mods and instead make them scale with Skill Tier - one less headache to farm for plus it still rewards players who actually invest into tiers which was the whole point of the revamp because it breaks the game when it's too easy to dip into multiple classes.
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