That actually looks pretty cool. I'd go further to say that only one of the the final tier abilities can be bought for armor (only 10% chance on hit or only 15% to double strike or only +10% to all triggered skills/abilities). It would up the RPG + Strat ante a tad.

how do you do tis

Photoshop.

This is an awesome idea! It does away with the difficult-for-new-players item recipe system in DotA without giving up the functionality of it! Great idea!

Pretty cool idea actually.

I was thinking for every single item except consumables (but some of the current items would be removed, maybe a few new ones added)

No, it lets you slowly customize an item over time to your specifications. It allows you to go to the intermediary stage you want when you want. It could be accomplished with about 700 items total, but that would be inane. If we add unpurchaseable factors, that adds another completely arbitrary layer of complexity to the whole thing and pervert strategy into knowing the whole goddamn upgrade tree for everything instead of making good decisions on the fly. If various kills made some upgrades cheaper, sure, but if you need unpurchaseables, it'll be almost as inane as recipies, becuase it'll require a similar level of studying. I study for calculus. I DO NOT study for video games. If something that needs over ten minutes of study to be passable at, I will go apeshit.

Innociv, excellent job getting the right way to do items into such a good post. Karma for you!

The only problem with the system is that many items are already (basically) upgrades of an older item. Some items would need to be removed or revamped.

I say just start out with one item of each kind, i.e. basic boots, basic gloves, basic helms, and upgrade in the forge from there.

So there's one shop at base with the lowest tier of items. Next to that shop, there's the upgrade center.

To me, as proposed, Innociv's system seems to involve more than a little studying itself. While the concept is certainly simple, there really aren't that many different attributes that can be raised. Not in comparison to the number of upgrade paths, anyway. Sooner or later, two different paths (on entirely different categories of items) are going to be similar. Footwear and boots might both have armour upgrade paths, for example.

At this point, you're not only forced to decide which upgrade paths you want, you also have to decide which armour item to get that path with. Should you get your armour+ through boots or breastplate? Energy recharge+ through ring or helmet? Which item gives a bigger boost? Which is more affordable? What about oddball paths that give powerups that aren't readily apparent from the initial stats (i.e the middle path in your picture). That's more than a little studying in itself, I'd say.

I'm all for simplifying the item system, and the idea of upgrading IS more intuitive than going over each items' stats and trying to find the "right" item for your budget at the moment. And the present system is probably only going to get worse when more options are made available. I just think this proposed system has the potential to be just as complex.

Is there any merit to having just a single upgrade path for each item? Where each level simply involves a multiplier being used for the item's base stats? i.e. If the base item gives 100 armour and 10% attack speed, each subsequent level simply doubles the previous level's stats? Another similar item might give 200 base armour, but only 5% attack speed. Since the level increases are always proportionate, the player could quickly prioritize his attributes by the item's base stats, without having to waste time looking at the upgrade paths. And you could still remove a few items, since one item could cover both low and high levels.

Just a few thoughts on the matter.

Mehve, 1 upgrade could give more than 1 attribute.

I just used an example on an item that only has two.
Like say you have the rings.

Ring of Fortune - $2500
Health: +210
Health Regen: +0.42/sec
Attack Speed: +10.5%
Armor: +105
Energy: +300
Energy Regen: +25%

Ring of the Ancients - $5200
Health: +345
Health Regen: +0.69/sec
Attack Speed: +17.25%
Armor: +175
Energy: +575
Energy Regen: +40%

All Father's Ring - $16200
Health: +900
Health Regen: +1.8/sec
Attack Speed: +45%
Armor: +450
Energy: +1500
Energy Regen: +100%

You would start with just the first one.  One path would upgrade, health and health regen and armor maybe, and maybe the other energy, energy regen, and attack speed.
Do first level of both, and middle path at the bottom would be like the all-father ring.  The left and right end path something different.

There does not need to be, and there SHOULD NOT be a bunch of branches, one for each attribute.  You'd choose the group of attribute buffs you want the most.

Also, the possible upgrades could be shown when you hover over the item in the shop.  I've kept it simple with the few paths.
And you could get +armor from BOTH the breast plate and the boots..
And while you could go both the armor path on boots and breast plate, the bonus at the very end would be different.
So whether you choose the boots or breastplate for armor would be based on the other base stat(like maybe the breast plate gives health and health regen, vs the attack speed of boots.) and the last upgrade you get from following a path.

I original thought that just a simple lvl 2, lvl 3 upgrading of items that'd boost all stats kinda like you mentioned in the end of your post(so ring of fortune would become ring of the ancients, would become all father's ring).  But I think this would be much better as 72 items could be made out of 24, instead of 24 better items made out of 24 weaker ones.

When you hover over the shop you could get something simple like.. (photoshopping, brb)

\

Simple, yes?

Ugh.. wouldn't let me edit.  This is so annoying.

Anyways, after someone uses the blacksmith once on an item it'd become instantly recognizable what the UP arrow is besides the stats(^1 is upgraded by the first upgrade, ^2 is upgraded by the second upgrade at blacksmith thing.)  And the paths it'd become instantly recognizable that getting 2 of up 1 is path1, upgrading lvl 1 of both is path 2, and upgrading both of the 2nd is path 3.

IMO that's more intuitive than having tons of items, and much more than recipes.  

REALLY this is turning 1 item into 8.  so 24 items is 192.  I just said 72 because there is 72 if you count just the end path on 24 items.  But imagine 192 items in the shop.   That wouldn't be good