Just happened to notice this topic (I don't visit this particular subforum that often), but this talk about respawning after death has led to a question:
* Has there been any module where you *had* to die and respawn in order to progress?
(I often think of whether there could be troll modules in this game, and having to die might be the sort of mechanic that would fit in this sort of module; now there's just the matter of making it not so easy to die.)
wiiseeyou: Yeah, you can definitely ruin a game with a bad inventory system. I liked some of what I played of Divinity Original Sin 2, but the constant loot dropping slowed the game down so much that I didn't enjoy the game anymore. Always needing to compare new gear wasn't fun at all.
Reminds me of Ultima 7's inventory system, though there the problem was different:
* The inventory is a mess, and it can be annoying to find that one item you need from it when you need it.
* The game requires that you manually feed characters so that they don't starve (simply having food isn't enough), which forces the player to interact with the inventory system more than would otherwise be necessary, making the inventory issue worse.
Personally, I would prefer it if games would just use an inventory system where your only limit is 99 of an item and such inventory is shared; Ultima 4 and 5 do this, as well as much of the Final Fantasy series (FF5 and FF6 come to mind). This way, you never have to drop any items.
By the way, another thought relating to an inventory system: In Might and Magic: World of Xeen, your armor inventory tends to fill up quickly, armor breaks easily (reach -10 HP and *all* worn armor breaks, and you have to go back to town if you want it repaired), and I've found that AC isn't worth the trouble (especially since there are entire areas, the first town being one of them, where AC will do you no good). Easier just to ignore armor and sell everything that appears in your armor inventory, so you only have to worry about other types of items.
wiiseeyou: I like how in NWN you rarely get any weapons or gear that is better then what you already have, cutting down on the time comparing if this sword is slightly better then that sword. Unlike how in OS2 you always had to compare not only if a weapon had a higher average base damage, but also elemental, and poison, and buffs, or de-buffs, and I don't know if maybe you looked cooler in plaid then in stripes. Plus you had 3 more companions you needed to do this for every time you got loot.
What if, instead, you rarely get gear that *isn't* better than what you have?
One simple way of doing this would be to make enemies not drop their equipment on death, but put exceptions for anything interesting that the enemy has. That way, enemies wouldn't drop plain longswords well after they're obsolete, for example.
I think JRPGs tend to have the right idea here (though they do have a stealing mechanic that does not make logical sense; you can steal from an enemy in some games (including Final Fantasy 3 and onwards), and get an item the enemy would not have dropped on death.
(Speaking of which, having allies drop their inventory on death makes things annoying; it's why, in Baldur's Gate 2, I would often reload on death even though resurrection is easy to come by in that game.)