What kind of settings are you using for yours?
With 3.0, I just set most of mine to "ON" (>true</) after I got fed up trying to adjust it. The defaults for 3.0 work fine unless I do any battlegrounds-style areas (Einherjar, Legion, etc) which made it seem as though nothing wouldn't NOT blink. I'm sure there's a setting that makes it work like 2.0 but I'm too lazy to find it. I just unload/gearswap/reload if I don't like the look of what I zoned in wearing.
EDIT: CopyPasta of my settings.txt on laptop
<alwaysself>false</alwaysself>
<alwaysfollow>false</alwaysfollow>
<alwaysparty>true</alwaysparty>
<alwaysally>true</alwaysally>
<alwaysothers>false</alwaysothers>
<targetself>false</targetself>
<targetfollow>true</targetfollow>
<targetparty>true</targetparty>
<targetally>true</targetally>
<targetothers>true</targetothers>
<combatself>true</combatself>
<combatfollow>true</combatfollow>
<combatparty>true</combatparty>
<combatally>true</combatally>
<combatothers>true</combatothers>