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-investigations on first time completion reward cosmetics from a limited pool
-most main missions now have a chance of dropping an Agent, and the pool depends on what content you're doing and in what zone
-dungeons drop extraordinary items
-there's a chance that if the game goes far enough, they'll start introducing blue items regularly, or integrate previous cache items as more in-game attainable rewards, but this is just personal speculation
TLDR; no, its not just about getting green items of same basic appearance and relative uselessness
I got blue items (drops, not upgrade) as early as a rare Kingsmouth drop. Green is essentially fodder (maxed greens can even act as cheaper fodder for upgrading other things - less anima shard cost), Blue is the functional basis, Purple is the endgame basis, Orange is the endgame grind, Red is the super grind and/or whale bait. Currently.
Everything DOES have its use. Its just that an un-upgraded (Lv 1) 1-2 pip ordinary green item is the least useful in itself. But you can upgrade it for various reasons, or else sell on the AH for minimal Marks (people WILL buy it for use of upgrading so they don't have to do content as much), or at least sell at the vendor for more anima shards.
Barring exceptions, a 3pip talisman is preferable to even a 2 pip extraordinary talisman. Of course there are exceptions to this, but its only a very small number for which that isn't the rule.
Weapons have better suffix stats (not base) depending on pip.
1-pips are rather useless to focus on but you're not heavily penalized; and technically the special effect on an extraordinary piece of gear may still make up for it.
2-pips are still rather useful, and through $ or Marks or events you may come into possession of an item that lets you upgrade a rare 2-pip into the usually even more rare 3-pip.
3-pips are the ultimate goal though, yes. The most basic weapon upgrading is to take a 3-pip green item and fuse it with any other green item, then take that new 3-pip blue item and fuse it with a blue, etc, until you have any (ordinary or extraordinary) 3-pip red item. Which ultimately you could use as upgrade (or fusion?) fodder for more important 3-pip extraordinary.
Endgame players try to have 3-pips but its not a major strike against them if they have 2-pips of things, depending on what that is/how many there are.
Also, special game-wide events sometimes award materials that can turn 2 pip extraordinary items into 3 pip extraordinary items, but they're pretty rare.