[xerophtye]

>I did try this, but my experience was that it made killing mobs predictable and boring. "Oh, look, the wizard dropped yet another robe." I deliberately sacrificed realism (which is of limited value in my book anyway) to get a more exciting, surprising game.

My opinion is somewhere between the two. While yes, repetitive loot is boring, seeing an enemy shoot fireballs at me and knowing its because of an item he has (an item i can loot), has its own thrill. "ooo! i want that!". It makes battles more fun, knowing that you are gonna get something cool.