I’m using a melee rogue with double daggers and have been upgrading them as I lvl up. Is this a good approach or would I be better off saving the materials for later on and using the weapons as-is?
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Keep upgrading.
As you level up, you will throwing out old item. However, max out item help you climb level and questing faster.
Don’t worry about resources. You will have a ton of gold “trash” later on. Each time you kill boss, participate in world map event, it throw one or two gold item. Most of gold item are weaker than what you have. So, break them for materials.