I love the idea. As a long time player I constantly talk about the good old days and get so nostalgic sometimes. Being able to look like we did back in the day will be cool, but I don't like the idea that I won't be able to distinguish stuff anymore.
It's not huge, but I like seeing someone and being able to say oh they are geared as hell, either in pvp or just in town. Like seeing those green halfus shoulders vs. those red ones, you just know. Oh well, I hope my thunderfury sitting in my bag will be able to get put to use in this new option.