[Lucid:]

But I can already do that. >.> [/irrelevant]
There's two sides to it. Some people have a lot of items and have a huge advantage in avatar contests over newer people who might only have commons. A dream avatar creator puts everybody on a level playing field and forces people to be more creative with things like layering and color coordination. But I do see how it reduces the drive to collect multiples of rare items. If you don't wear it yourself and don't need it for a contest, there isn't much point unless you want to sell it later.