So if I replace a legndary I am wearing with another of the same type thats newer - what happens to all the stats (the points spent on levelling etc?)
every 10 levels i.e. 10/20/30 etc you get to reforge which as part of the process you can get points and settings etc refunded (this also applies at max level.
Upon breaking down a leveled item you get various settings, legendary shards (at times) and item xp runes to aplpy elsewhere.
Its best to deconstruct at 2/11/21/31/41 for maximum effinciency, ie doing so at 29 nets you the same as at 21
and word of advise it takes about 15500 xp from 1 -10 so save those larger xp runes for higher gear.