Heliaso wrote:recycling will become useless.
^^ this
Nobody produces T1, you just loot it off the field from beacons or ratting, and use it to build T2. T1 is the "plankton" of the industrial world. It helps in all aspects of industry from the bottom up. From recycling for mats, selling for NIC, using it to produce T2, or just using it as free gear to use when starting out. It is the beginning of the whole system. Hence why it's NPC seeded.
New indy players wont make much money selling T1, but if its easy for them to get decent amounts of T1, and turn it into T2, they will make money selling that. Even vets use T2 gear in higher EP builds. One of my favorite builds is almost all T2. Not to mention that large scale producers will by large quantities of T2 to make T3-T4. I would gladly buy all my T2 gear, instead of having to build T1 -> T2. That would save major amounts of time for me, and would also allow new players to sell something to the open market with reliable demand.