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I am listening to your ideas, but a Flashback system is simply not something we can implement in a timeframe you would all be happy with.
Instead we are looking into other options to get you the Pool B choice so level 50s don't feel gimped.
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It could be as simple as:
if you are beyond a Story Arc, but have completed the Arc, those special drops can come as the result of simple fighting. And any future drops for Arcs will be available as you complete them. If you are level 50, then all the Arc drops for Arcs you've completed will come to you over time by defeating enemies.
If you didn't complete a Story Arc and are passed it then I say tough luck - you should have done your arcs.
That is reasonable and rewards those that took the time to do the Arcs in the first place when there wasn't this kind of incentive.
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Ha, I love this kind of attitude. At what point was doing your story arcs ever stated as the required way to play? I have a 50 that did all his arcs, that I could anyways, and a 50 thats done none. The second was after I got burnt out on doing the same missions over and over again. So I street swept and occassionally helped others when asked. My other like 15 alts could be called a mixture of the first 2; leaning more on the side of having done the arcs.
Anywho, no I don't feel this is an acceptable out for the Devs. Instead everytime I see that quote I wonder,
"Would we have a Flashback System, if it had been started on TWO YEARS ago when I first read the idea?"
I'll let the Devs in on a little secret here, I haven't played 40+ characters; counting the ones that I took to the teens then deleted; inorder to do the same things over and over again. I've done it for the customization(powers, costumes, bio). The ones that are still on my account are held for the love of what they do and the 50s with the hope that I'll have more to do with them.
So my solution other than what should have been started on 2 years ago is
Change the Arc Completion bonus so everyone gets it. 
This would actually solve the 50s issue and would help get stuff into the economy for the auction house to function.
2 cents
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I'm just throwing out ideas. I don't even think that solution is the right one, I'm just trying to add things to the idea pool.
I don't like the idea that drops are tied to any one activity. All activities should drop the same stuff. You should be able to do nothing but street sweep and have access to all drops. You should be able to do nothing but TFs and be able to get all drops. etc. etc.
I don't have the time to sit and do a TF. If this game is so casual friendly, why is this being punished?
50s can't go back and redo story arcs (which they shouldn't have to do, BTW), why are they being punished?
You honestly want to take your 50 and redo the Dr Vahz story arc? Not me. I already suffered through that with my 50 once. I should get the drop grandfathered-style.
Would they mind refunding my almost 3 years of membership and let me start paying as of Issue 9? I doubt it. Let me get these drops for stuff I've already completed and paid for and drop the TF/Trial/Arc only stuff.