This is how all items should scale. This does not mean a item from the bottom of the list can’t be better than the top of the list, however, that would be extremely unlikely and rare.
Best – Crafted Gear w/ Dungeon Ingredients
Good – Crafted Gear
Mediocre – Faction Gear / PvP Loot / Dungeon Loot
Bad – Chest Loot
Terrible – Mob Loot
Unfortunately that isn’t the case, but that’s the cheat sheet for the devs. Crafted gear should always be the best, because it requires a heavy time sink and it would certainly make more people likely to buy it. As of right now, everything is mostly replacing crafted gear, it’s making a terrible economy.