I agree it does seem very unbalanced. Of course, what we don't know is what the possible future consequences of helping the witch are. I'm not sure anyone does, including the developers, but maybe those of us that helped her and got the necklace will rue the day we made that choice, and you guys will be laughing
I think making the upgrade of any item possible would require some coding. Currently, it just changes one drop list for another. The list of available upgrades could easily be increased though, as could the scale of the upgrades.
Lastly, although it probably doesn't need to be said at this point, creating a save game before any major decision is taken can't hurt. In this respect, I wish we could name the save games directly in AT. Currently, I create a save game, and then use a file manager to create a folder such as "Just before I decide not to help the witch", and copy the save game into it. That works, but it's a little clumsy.
Level:69, XP:6092391, PV:584, FQ:81
HP:229, AC:212, AD:57-75, AP:4, ECC:16%, CM:1.5, BC:188, DR:3
Gold: 237559 | RoLS:1, RoL:1, GoW:1, VSH:1, RoFLS:1, WoB:1
HH:1, WA:1, CS:2, Cl:1, IF:4, Ev:3, Re:2, WP:DA:1, WP:1S:1, AP:L:1, FS:DW:2, S:DW:1