D'oh, that's what I get for just jumping into the conversation.
Alright, I can live with that. Less like Monster Hunter, and more like (a very lax version) of Onimusha's upgrade system. That's fine as well.
I think the part that makes it still somewhat like Monster Hunter is the fact that in order to do the upgrades, you need materials. Those materials drop from monsters or are found/mined/etc., and which monster drops the material depends on the material (so, unlike many other RPG's, you aren't going to kill a wolf and have it drop a gemstone or something). Often, the materials require special effort, such as chopping a tusk off of a cyclops, or the tail off of a lizard.
That feels pretty similar to Monster Hunter to me, and I much prefer it because, like MH, it means that if you want to upgrade a specific weapon, you can note which specific materials you need and then go hunt the exact monster that drops it. It feels better to me than just killing random stuff and hoping that randomly something cool will spawn (ala Diablo). It feels like you are working toward a goal, even if the item drops somewhat rarely from whatever monster gives it.
I also much prefer this system of mostly purchasing weapons and then finding rare materials ala Monster Hunter to upgrade them, than having some kind of "blacksmith skill" where I have to myself become a crafter of items and gain skill to make the best gear. In this, like in MH, you are using an NPC to actually do the weapon upgrades. That makes a whole lot more sense to me - why on earth would my adventuring hero take the time to master blacksmithing, and somehow become better at it in his spare time than blacksmiths throughout the world and history that have spent their lives on their craft? Its absurd, not to mention boring. I know some players really dig that stuff, but they can go play some other game as there's plenty with crafting systems. Me, I'd rather chop a tusk off a giant beast and bring it to an NPC to make the sword I bought that much better any day.
If you can't tell, I'm actually quite excited about the looting/upgrading system in this game because its more realistic than most RPGs, gives you goals to shoot for and makes it clear what you need to do to get the items you want, is not nearly as dependant on a random number generator, isn't going to waste hours of your time sorting through 100's of randomly-generated weapons you picked up trying to figure out which one is ACTUALLY better, and makes money seem valuable and useful. Basically, it doesn't waste my time but still gives me something compelling. Awesome.