devtrackers.gg
I think they said that the higher your level, the more likely that higher tier stuff would drop, so like (my numbers) at level 10 you might have a 1% chance that your drop will be "epic," but at level 20 it's a 10% chance, or something along those lines. I imagine that even that aside, an "epic" level 20 weapon would have higher stats than an "epic" level 10 weapon.
But they also seemed to imply that crafting was more of a gap-filler, not an endgame mechanic, that while you could craft "basic" versions of any type of thing, they seemed to imply that you would not be able to craft "the best" of any type of thing, leaving you at the whims of RNG farming for that.
Crafting fills a few gaps, mostly it's as a secondary sink... for example if you don't like shotguns (what's wrong with you? 😊) you could crush them all and craft sniper rifles instead.
The power level of the item that is crafted is tied to your pilot level, the rarity is dependent on the blueprint.
Once you've hit max pilot level, you can absolutely craft end game items assuming you have the mats and the blueprints. 😊