If the equipment itself is destroyed then the reconfigure creature goes to the graveyard
I think this is one of the design thoughts behind this mechanic
Though its a Song card and not a character, its not uncommon to see Frozens star, Elsa, on these lists
It plays a grindy game, shrinks opposing Goyfs, and does wonders handling Snappy/Souls (both of which are hallmarks of value-driven strategies that will seek to gain an edge in the mid and lategame)
The abilities of Gods function as long as they're on the battlefield, regardless of whether they're creatures
By the looks of things, Invasion of Tarkir is already on the move price-wise, with copies climbing from around $3.50 to $5 over the last month