Every character has 5 or so skins but really only 2 or 3 are truly distinct and the others have a slight alteration
Why did you expect more? Sorry to say but this is 100% on you, dawg. NRS never promised more than they delivered.
"only 2 or 3 are truly distinct" is exactly how it was in MKX. Except in MKX that means other skins
did not exist, whereas in MK11 it means you have a shitton of subtly different options to pick from, AND you have gear to pick from on top of that, which in many cases makes a HUGE difference.
the shaders are mostly awful and lead to red Sub-Zeroes, neon green Kabals and other eyesores
Feature, not bug. What you think is an eyesore I think looks cool, and vice versa. I'm not mad about the "bad colors" because I know they're making someone else happy, and I have the colors I want.
most of the gear pieces hardly stand out, like Sub's knives or Skarlet's blood flask
Hard disagree. Some. Not most. The vast majority of characters have two items that make a pretty big difference (headpiece + weapon). Some like Johnny, Kano, Liu, Shao Kahn, etc, have all three make a noticeable difference.
round taunts can't even be selected; etc. etc.
I agree, this was a weird decision.
And the worst part is that, to find the 1 or 2 cool gear pieces/skins you do want, you have to sift through a mountain of bullshit because it's all random.
It's not
all random. There are elements of randomness to it and there are elements of decision making. You can look through towers to see if any are available that reward items you want, and go for them. If there aren't, you can play something else (Krypt, ranked) or play a different game and come back tomorrow.
Try to see what NRS is doing from their point of view -- which will help you understand how this system works for the game, and for casual gamers. NRS doesn't want people to have their ONE MOST FAVORITEST skin in the whole wide world on day 1. They want people to come back to the game, again and again, to get that elusive 1 skin for every character, and slowly work towards them over time. "Upgrading" your skins from ones you don't like to ones you like slightly more, to even more, to even more, to finally getting the 1 you've wanted all along, is supposed to be part of the fun.