If this is working as intended it's one of the most stupid things they have ever done with the game to date.
I agree completely, but it should be obvious that this is what they're aiming to do. I don't think the items will be saturated, but they'll certainly enter the same type of territory where it's as viable or more viable to aim to buy them from trove as it is to actually do the content.
How many people do you know who actually do a daily omen boss to try to get their desired body, even considering how many are able to solo or multibox it effortlessly? I'm picturing that kind of situation for shinryu drops, at least, and probably a decent dent in Lilith mercs since this is instant.