From watching some of the videos, I'm not sure what you would do with items you don't want to wear & no-one wants to trade for. In any other game you'd just sell them for gold/currency at a merchant, or break them down into crafting materials, but I can see that selling stuff at merchants is probably one of the things that leads to having too much gold/currency (which devalues the currency) along with insufficient gold-sinks & I don't know if crafting/etc would fit in with GGG's plans for PoE.

Also, are there any options to filter out lower quality items from having their names displayed in-game?

Experienced.