Yes this is a problem. It's a direct consequence of having a high rates server and stuff like Dim being too easy to farm.
- People can get to lv 260 in a single day
- They're immediately able to equip endgame gear
- Endgame gear is mostly easy to farm/get (Dim!)
- Endgame gear costs the same to refine/grade than outdated gear
- Thus most players see no reason to use outdated gear
- Thus less people farm instances like villa or sell old gear
Now to be fair nothing stops you from obtaining outdated gear and playing with that until you decide to progress further. I'm a fan of this slow progression game. But the server currently doesn't give you any easier way to go that route, and you'll have to spend big zeny on upgrading lesser gear, as much zeny as you would for endgame stuff. It makes no sense.