don't say the system is a failure yet. For all we know, you might be able to choose the augments you wish to get on an item at a later date, either through the chests in Lower Jeuno with the new expansion as a reward for something, or through a "point system" in WoTG end-game. Like, kill an NM to get a heart, which you then trade to an NPC together with an item of your choice to augment it with Refresh.
imo, that would be a good way of rewarding the players with new gear. You don't actually get new gear, you get ways of enhancing your current gear. Could be some armor rewards as well of course, with the best augmentations (refresh, fast cast etc.) coming from the hardest PW-like boss.