Only gets my vote if items that are unlocked are not necessarily better than those available as default. In other words, just because some guy has played the game 150 hours more than me, I do not think he should get an item that gives him a drastic edge.
For instance, Call of Duty 4 handles this idea well. When you first start out in multiplayer, you have very few option (2 classes) to choose from. As you level, more options are opened up. As you complete challenges, other weapon attachments are unlocked and experience is gained. However, a level 1 player with an M16 can still go toe to toe with a Prestige 10, level 55 player (level cap) in a gun fight. The lvl 55 may have more options available, but there just different, not necessarily better than what the lvl 1 player is equipped with.
In contrast, with World of Warcraft, go into a lvl 70 arena with basic lvl 70 gear and within a few seconds you will find yourself lying face down getting danced and spit on. To excel in arena, you have to put in the hours and earn the equipment which will consequently give you the edge (or even up as is too often the case) with other players.
Maybe some of you like the WOW setup, but for this type of game, I'd much prefer the COD4 model with regards to unlockable items.