Have to agree, was pretty baffled when these penalties were added to try and discourage people from using the namesake quest reward. Even without the negatives, its now far far inferior to masterworkable/enchantable back items and the penalties really aren't necessary.
I get that this item was supposed to reflect our various virtue, but I don’t think the various stats just didn’t seem to come off well. Some other form of this reflecting our virtue could possibly be used, but I don’t have any suggestions. There is however the different color based on your virtue. That I think that did actually come out well.
Previously, you got a white cloak and +5 stats for high positive virtue and a black cloak with zero stats for negative virtue. I don't see why they couldn't at least return to what it was before.
It is happening but you also get negative stats (along with positive move speed, aggro and resistance).
Perhaps, it's because future 'episodes' of the game will improve the stats in some positive way, either enhancing the good, or removing some bad? Still waiting for Episode 2 though....
It was done because everyone was wearing the shroud (you know, ultimate quest reward and all that) and they wanted to stop it. Now we have craftable/masterworkable/enchantable back items that are much better.