Would it be possible to come up with a different kind of reject that’s between a soft and hard reject?

Hard rejects should be items that lack both concept and design.

A new type of reject should be items that lack design but has a good concept.
Like a diamond in the rough.

Soft rejects are simply details that needs to be worked out.

I noticed quite a lot of items have great potential but because they lack a bit with the design,
they are getting hard rejected. From a developer view point, this is pretty harsh
especially as they are discouraged to resubmit it.

A new type of reject should be more friendly towards developers and encourage them better to improve.