Does EQ matter? Yes, absolutely, it does. It matters a few shades more than I'd like to to, in fact, and I'd be happy to see some of the higher-end rares removed from the game. I'd also love to see life insurance gone, and I'd love to see consumable dependence go down a fair bit.
But there are a couple of things to keep in mind when discussing how powerful eq is. First, there's been a long-running project to update and rebalance pretty much every piece of eq in the game, and many of the gear objections that currently exist may not be applicable when this project is completed anyways, so try to be a bit patient. Running FL is not the job of the IMMs - it is their choice, their pleasure, and something they do when they aren't working their REAL jobs or dealing with other aspects of their real lives. Every bit of player bitching and moaning about how some aspect of the game isn't exactly how they want it to be is a bit of flak that the IMMs are catching about how they apparently aren't working hard enough - despite not being paid or getting any sort of reward for their efforts (beyond game-related pride/pleasure). Cut them some slack, be patient, and don't whine about things not being done quickly enough.
Second, I cannot think of a single occasion in my entire history of FL playing where someone having better eq was the sole factor that caused my death. Every death I've ever taken in this game (beyond the very rare lowbie death to bashlock) was due to me screwing up somehow - either I didn't run well, or I didn't flee soon enough, or I didn't prep well enough, etc. The primary benefit of good eq is that it compensates for weaknesses and mitigates the damage your mistakes cause... but it won't get the kill for you (there are certain exceptions to this with the very, VERY high end eq - but that stuff I'd be happy to see gone anyways
). I can recall a good number of fights where I didn't win because of the opponent's eq being a lot better than mine and protecting him from his screw ups - but not winning and dying are two very different outcomes. If you go into a fight against someone who is way better equipped than you and you survive, that's not something to complain about - that's something to be proud of.