The only benefit to allowing old style item loot, is to put a damper on the lvl 12 super twink syndrome.
As someone who played red EQ from beta4 onwards, i'd go with just coin loot. But the idea of a random inventory item being looted is intriguing and won't punish non casters more then casters.
I think zone control/spawn control is reason enough to encourage pvp.
Coin loot is a must though.
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