While this contains some truth, I think it is not exact.
Bind on Pickup is a sound mechanic which rewards only who actually plays in the raid and earns it as a reward, as opposite to someone that just farms and buys the item from the Auction House.
I'm not saying it is a good thing, and I definitely don't say that there aren't better alternatives, but I need to point out that it makes sense.
maybe it makes some sense when it is for rare items from raid boss, but not when its for every single item in game.
i was playing aion long time ago, and was farming levels. at one level i looted exactly the same green 11 bp's and from them i equipped one, which was boe. now what is the point of this whole system if it took out one item out of 11. NONE
and the bad side of this is that when i will find slightly better item than the one i currently wear i prefer to sell it than waste it to bind on me. thats totally wrong and game breaking. and for what? one item out of 11?