(1) Permanent upgrades are costly as hell. Expect to spend $150-$200 USD to make one and get it forged/reinforced. And staff is opposed to selling them because they do make the game unplayable for those that can't afford them. Temporary upgrades allow even folks that can't afford the permanent ones to play with the big kids at least as long as their monthly gaming stipend lasts.
(2) I would much rather see character-bound weapons than those that are passed around and sold on EM for stupid amounts of RPs. I believe staff would rather see the lower, but steadier income from character bound pre-made epics rather than the hassle of forged upgrade parts (which have the danger of being broken during the forging and reinforcing processes). They are less problematic to support and because they are somewhat cheaper than tradeable upgrades, they are more affordable by those players that don't have huge amounts of money to throw at this game. I actually still have a character that has those bound noobie epics they sold a couple years back. The character has long since outgrown them, but while that toon was leveling they were .... epic.
Not sure what the character has to do with it, but not even the Epics or Upgrade v1.0s were sold for $500 US back in the day. I can't see the cost of a character-bound epic being more than 6000 rps (12000 ecash) which to me would be a fair price for such a weapon that can't be traded or stored in your bank.