I'm totally on board with this. It should be implemented in the form of Axes/Swords/Etc that are made of wood, and armor that's the same.
None of it has any actual combat value. You just throw it on and set the stats for sparring. These settings could even be saved in a wardrobe.
Take it a step further and make it so that they can be "locked" making it impossible to change their stats without the appropriate key.
Why, I hear you say?
So that you can set up completely fair combat arenas where the wearer can't arbitrarily alter their stats after being suited up.
.....
Alternately: Set up an arena area like you set up a personal claim. People can check into the 'Gladiatorial Post' and those with proper permission can go in and change the effective stats of those who have registered. While aggro'd those who are in the ring cannot leave it. Using a setting on the post it can be determined whether or not the participant can drop aggro by going peaceful, or whether both sides have to agree.
shubla wrote:Or easier way: make alts with low stats equal to each other

This prevents us from setting up combat arenas with deliberately unequal contestants to learn how to deal with a superior opponent or multiple weaker opponents.