Item loot is great. It creates tension and provides meaning in pvp.
It's also a giant pita to manage in a game like EQ. I think item loot (minus weapon slots) is fine for classic, and maybe kunark, but once it goes passed that it has serious issues.
Basically item loot early EQ equates to "do I want to wear my diamond/BD stuff or am I a bitch?" If you didn't wear it your resists probably sucked, and if you did it made a huge impact on pvp, while giving your opponents a chance to get something nice. You couldn't really be a resist god without jewelry early EQ.
I.e. nodrop wasn't enough to compete, while still giving you a serious edge. Kunark era you could supplement planar gear and wear jewelry and still be competitive.
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