I liked the Iron Man competion in WoW was done. People could use white gear, but the important part of the challenge was not to die once to get to level cap (sure that lead to much grinding). Also no BGs, no grouping, not even accepting green items as quest rewards. That seemed to me like a challenge, just running around naked and die a lot does not.
I agree. The WoW competition was amazing. I'd suggest the OP takes up that challenge instead of trying to cheat with "permitted" items. He already fails to meet the challenge by dieing all the time.