I'm fairly sure 95% of the players just dressed their hired recruits into the absolute best available gear for their level anyway, so this nerf to their best-in-slot loadout seems fairly justified.
A good way to counterbalance it would have been to allow the player to recruit more of them / have them be recruitable from villages, etc.
Update:
Finally tried them out.. Even when actively trying to avoid the most OP weapon/armor combinations, and just picking stuff that matches by equipment color/overall theme, the game nickel and dimes you at every corner, and you risk running out of the 'equipment points' by simply picking a heraldic shield, because how dare you. It doesn't help that better-looking items tend to also have better stats and thus be worth more points.
A good way to counterbalance it would have been to allow the player to recruit more of them / have them be recruitable from villages, etc.
Update:
Finally tried them out.. Even when actively trying to avoid the most OP weapon/armor combinations, and just picking stuff that matches by equipment color/overall theme, the game nickel and dimes you at every corner, and you risk running out of the 'equipment points' by simply picking a heraldic shield, because how dare you. It doesn't help that better-looking items tend to also have better stats and thus be worth more points.