So is D&D Skyrim etc. Just because a game is a RP game doesn't mean everything is left to the player. Part of the reason to implement this would be for atmosphere. When people do RP their armour, in my experience 80% of them RP having some ornate full plate, even when they are a dirt poor knight of a few weeks in game.
LOL. True and that doesn't make any sense when your income is 25 gold per week. I don't think you can even afford a full plate armour with so little gold.