ARPG and RPG equipment systems

Not too long ago I asked for your thoughts on a subject concering a little zelda project I'm doing. It's no longer a 'zelda' project persay but, in essence it is the same thing. So, anyways I have another question for you all. The first thread is located here You can add your thoughts to that too if you'd like.

General Question:
In action RPGs, or just norm RPGs, what type of equipment system do you think works the best?

When I say 'equipment' I mean things that are worn or held by a character. Such as a helm, gloves, boots, weapon, just traditional equippable loot. If I was refering to the tool(aka hookshot) Link finds in a dungeon I would call it an 'item'.

Now then, I will list some choices of equipment systems for you guys to pick from and vote on. Once again, thank you for your thoughts.

Choices:
Traditional: Used in the 2d final fantasy games and probly came from DnD. Served as the basis for all the equipment systems we know today. It gives you slots for all the equipment types. You can't customize your equipment with this system. Tales of Symphonia used this system.

Customizable Traditional: This is the most prevalent system today. Used in most MMORPGs, and A/RPGs(WoW, Diablo, and are an examples). Allows players to change and strengthen their weapons through various means. Though overall, players' weapons are still mostly the same because all instances of an item are the same when it drops off a monster.

Forged: Players make their own equipment from materials throughout the game world. Monsters no longer drop loot in the traditional sense. They drop rare materials instead which in turn is turned into poweful equipment. Players may also recycle their old equipment and reforge it into better equipment of the same type. The resulting equipment also gets a bonus to its stats from any enhancements you had on the prevous item. Example: If you had two steel swords, one you bought and one you reforged from a lesser item that had +2 attack on it. The reforged steel sword would be stronger because it would get the +2 attack bonus the lesser item had but have all its enhancement slots open.

Leveled: Players start out with a set of equipment. Like a player this set gains exp through its use and its user's use of skills. Through leveling up it's stats will change. Once it reaches a certain level it changes forms depending on how it was used. Every time a piece of equipment gets a level it gains three sockets so as to allow a player to further enhance it. So when your sword gets a level it retains any prevous bonuses you had on it while granting you 3 more sockets.

There be the choices, post your suggestions and vote in the poll. Thank you.