Though I haven't really played with it yet, I believe some decent instancing was added a few months back. I am sure that nothing has been done for evolving items yet. I never played live when evolving items were around, so I know nothing about them unless you count stuff like charms that scale stats as evolving. Doesn't seem like it would be overly hard to make items that can "evolve" if evolving just means that the stats change depending on the evolve level the item is at. But, I am not aware of anyone even thinking about working on them atm. Most of the devs already have their hands full right now too, so I wouldn't hold my breath for them if I was you :P
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