I agree with item loot.. should be a risk to having on your best gear but not a risk against *all* of it. No drop was a great system. You'd have to guage it in a beta if the masses will be able to stomach it. For instance, things that tend to tip people in a "too powerful" direction like full diamond, dragon haste.. imo there should be a risk in wearing these things.
No loots from main hand / ranged though.
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