What Does Breaking Down Equipment Do?

I either get ‘Broken Equipment Powder’ or ‘Useful Equipment Piece’.
Both are just junk to sell, right? At least, the game places them both in ‘sell all junk’.

Can either be used in any sort of crafting? Are they just to sell? Do I get more money selling this stuff rather than the equipment itself?

Low level gear only breaks down into those 2 junk items. Higher level gear will break down into upgrade/exchange materials however the main benefit of dismantling lower level gear is to consolidate all the unneeded gear drops and free up inventory space.
They’ve no real purpose beyond that.
You get an insignificant amount of silver byboth npcing gear individually and selling the parts.

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Thank you.

Also less clicks needed to sell all items if broken to pieces. Since here is no sell all button or similar.

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And yet there is a “Junk” characterization, as though they intended to have a “Sell all Junk” button. Maybe incoming.

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And what is that on the left than, eh?

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There you go, that’s what I’m talking about. The issue, then, is how to designate items as junk. I suspect you can try right clicking an item for the dropdown menu but I’m not in the game atm.