How would the alternative make any sense at all? When you spawn in at level one you're a brand new recruit with effectively no experience. You should be in extremely plain, clean gear provided to you, like someone just handed you a bundle of clothes and said "Alright, put this on and report back here, make it quick". Not in some wicked sweet gladiator armor or looking like you just strolled out of a Kirin Tor council meeting when you know literally one spell.
The character creation sets are there to give you a glimpse of what that class looks like down the road. The starter sets are there to be an unassuming initial set of gear.