Yes you get it for preordering, and you will find the other pieces of the set scattered throughout the game since you preordered. As I note in the bug thread it doesn't have a description - maybe they should add a description explaining it's from the pre-order.
As to your disatisfaction that is a shame. I could also see people complaining if the item was not any stronger than the items typically available (e.g., thanks for nothing). Fortunately, you can simpy not use the item (or maybe even destroy it for gems, I haven't tried). Personally, I think it's a nice item, though I agree with you that it gives an early game advantage.
Perhaps in the future they should let preorders choose from several items or varying levels of power. For example go to an NPC who is not normally there and pick something based on some colorful dialog.
Finally, I should add the preorder bonus was just that, a little bonus. We barely had any time in advance to get it anyway and it's not like we paid extra for it. In fact, if you got it on Steam it was actually cheaper since they typically discount preorders. So that's not discouraging anyone.
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