What's missing is in-game rewards matching those that players are currently gambling for (i.e. spending money on crown crates, with only a chance that their desired item will be present).
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But there are some. Which is basically all it needs.
But with that reasoning, you could also add this to the game...
Yes, you could. I don't think there's anything making these inherently impossible in Tamriel.
Whether you want them - maybe not. But that is a different question.
And there, I think the mohawk would be fine. (My main character has been using the non-coloured mohawk since I made her.) In the end, it comes down to taste.
Indeed. Personally, I'd prefer the game world to have a consistent style, which, in case of ESO, had always been more "natural". If extremely flashy hair colors don't exist outside the crown store... well, you can probably guess my opinion about that. Same goes for mounts: I dislike that the store (and especially crown crates) is full of noisy, flashy, overly effectful mounts that you never see anywhere in the game world, but some totally common, lorefriendly creatures are missing.
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