Yeah, that's what I was thinking, though I haven't gone through and actually looked at how the modifications play out.
If I had to guess, I'm pretty certain it wouldn't be game breaking since you still have to deal with the tech rating, which doesn't change.
After looking at a few items...
An Intek Laser Rifle for a FWL character would require an equipped Trait of +2 under these rules, instead of +4.
The M61A would require +3 instead of +5 for a FS character.
A Mauser 1200 would require +4 instead of +6.
So a two step in reduction for those three pieces of gear, which isn't that bad. You could stick with a faction's gear completely and get the most out of it, but I would guess most characters might wind up spending half the savings in order to acquire other gear. Still, its a nice bonus that doesn't seem that out of whack.