Its clearly(or at least it seems thatway to me) number 2.
And it sort of needs to be that way. If campaign gear just came perfectly itemized there would be no point to being a bunch of professions(mod/armoring/enhancement) and about a million other reasons(why even have mods etc if youre never gonna swap anything, timesink, harder to get bis etc).
Also dont find it that expensive but I have 2 chars with slicing so :>
I don't want it to be perfect, but it seems waaaaayyy off now..
In MY perfect world the stats would be useful, but the very best in slot stuff would come from crafters using crafting mats gathered from raids. As it is now I'm looking at getting Smuggler gear to rip out stuff for my Shadow.. That's just wrong imo!..