[quote][b]Transmogrify[/b]: to change or alter greatly and often with grotesque or humorous effect
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What is "transmogrification"? Basically, it was a system added to World of Warcraft that allowed you to change your armor's appearance to that of another piece while maintaining the stats. So basically, you have control over what your armor looks like while keeping the best possible stats.
Let's say there is a set you really like. Using [url=http://conceptartworld.com/wp-content/uploads/2013/03/Destiny_Warlock_Armor_01b.jpg]this image as the example[/url], let's say that set is the third one. But the first set has better stats, and you are forced to use that or be at a disadvantage. Transmogrification would allow you to keep the first set, but have it appear as set three. You get to look how you like, while keeping on par stat-wise.
Of course, there would be some limitations, such as class-restrictions and such, but for the most part it is your choosing.
Who else agrees Bungie should have transmogrification in Destiny?
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I believe armor and helmets like what the hunter was wearing during the E3 will have some perks to them like the guns, but it's tentative information gleaned from various YouTube videos and sketchy at best between all the interviews.