Not even close really. It's pretty much cosmetic stuff. There were a few items when it first launched that had some stats in them at lower levels but you quickly outlevel the gear it didn't really matter. I wouldn't consider it P2W at all now.
You will be a bit weaker as a F2P or preferred unless you get the use artifact equipment token that opens up all gear use to you. It's one of the restrictions that just doesn't make sense. IF all your going to do is play very casually and just want to see the story it's no big deal. If you want more out of the game, you may have to pay some cash for it or get it off the GTN as a F2P/preferred player (the problem buying it off the GTN is it might be above your credit cap if your a F2P/preferred player.) Maybe you know a sub that can buy it for you and you pay them back over time if you really don't want to spend real money. I know I've done that for a few people I know.I'm not interested in rushing to get the best gear because I'd rather experience everything the game has to offer rather than rush to the end game stuff, but I am concerned that unless I spend money, I'll be quite weak gearwise.
Also, what does the preferred status do??