Morrowind has good hand placed loot, but rather boring random loot.
On the upside lots of item slots, on the downside rather boring item system, with most items just allowing you to cast a spell. Also Enchanting system is broken.
Most (not all) classic dungeon crawlers nail this aspect. Might & Magic is outstanding in awarding varied items that have game-play impact, with Gates to Another World being a prime example.
First game I thought of. Probably the most diverse loot before Diablo 1 or 2, and eight characters to divvy the loot.
I'd say Wizardry 7 and Grimoire have excellent itemization.
Wiz 7, seriously? You never find any interesting random loot, which makes the incentive to combat much weaker than in for example MM2.