Yea does seem to lvl much quiker in factions, but i think this is due to the fact that most of the XP u get from fairly basic missions is 3k-3.5k, in the original, the starting missions gave u 150-500 xp to start hence the reason it took so long.
As to the armour, i aint noticed much diffrence in price to the original. There is a place where u can get droks equivelent, and its much the same price i think, 1.5k to craft and then 75 of one material and 5-10 of another.
Still damned good game, and i think they way they incorporated the 1st and 2nd games is very good.
-Vinny-