A recycler that returns the items themselves but a quality higher, success depends on quality modules.
Mods introducing new content into the game.
New Ores and resources as well as machines.
Furnaces, assembling machines, production chains.
More than just chests.
In the description you give the example of 100 items at 12.5% quality. How would that be possible? My understanding was that the max quality you could get from a module was 6.2% for a legendary quality 3 mod.
https://www.reddit.com/r/factorio/comments/1nqxive/modules_ordered_by_bonus/
That was just an example to explain the rounding.