Yeah, the rng and the loot system is rooted to the core gameplay of the game, and i think it removes the mechanical and technical part of the game in a bad way.
I use low stance a lot, probably because my build isn't optimal in any way.
A simple way to make the equipment effects not affect the combat would be... pretty simple i think.
First, remove all those weird and different status something can have. Then, each weapon will be either unique (like Raikiri, or the Dragon Sword), or will be some common type that can be found multiple places/forged, like the basic Uchigatana, then you would have to upgrade those weapons at the smith, where the end result would be getting a high quality weapon if you stick with the one you want. You could make each weapon unique of course, by adding some default effects like lighting damage attached to it, or making the weapon hit harder but consuming more ki, or the opposite way, common weapons could have different upgrade paths, this way, it would suit different playstyles, imagine omnyo mage set giving you more ninjutsu points, or allowing to carry more talismans.
Same basic idea for equipment.
In this way, the loot and grinding would be focused on getting material to upgrade the weapons/armor, the different effects equipment could stack together would be in a more controlable enviroment, te game would be focused on mastering its combat, and using the different set of skills. Trying different builds and weapon types would be encourajed.
Leveling up would just need fine tuning for the balance i guess.
I know this seems like i don't like NiOH, but i love it, even with the gripe that i have with the upgrade/equipment system, still a great game, but i'm still really sad that at one point, i'll have to exchange my divine raikiri for something else.