Not really sure what to think here. I have never seen anyone wear any of the capes and I would bet most people do not even know where to claim them. It's definitely a passive and 'free' log slot but can be a big bummer if you get spooned on all unique drops and then have to go back and just farm KC. However at the end of the day it gives you something to do and duplicate drops are just an added bonus to the economy. I don't think 1000 kc is that big of a deal especially for collection log hunters. Either way it would not hurt me to see them removed 
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