A lot of what's wrong with DOS2 mechanics comes from the retarded way that levels scale stats extremly, a common level 15 item is probablly stronger than a legendary unique level 14 one, especially weapons. On the other hand if you struggle with an encounter you can go to a different part of the themepark zone and get a level, and that encounter becomes completly trivial. If levels made less a difference in terms of raw damage overall, I think it would have been a better game.
There are countless reasons I always preferred the way D&D handles itemization compared to a lot of these loot-focused computer games.
Let's take two examples here with Baldur's Gate 2 (which is pretty close to my golden standard when it comes to itemization) and Divinity Original Sin 1 and 2 (but especially the second).
In BG2:
- items have a very narrow range of stat scaling between early game and top tier, meaning you go from basic weapons to +2/3 at most, then you adventure into +4/5 when you go in the insane top levels where you are basically a demigod.
- Consequently you have a limited amount of tiers for weapons. A common sword will always be the same, consistently, wherever you'll find it, a +1 magic weapon or armor will be relatively common but expensive, +2 will be a luxury, +3 a valuable artifact or so, etc. Every time a bandit will drop a iron sword you won't have any need to check it and compare it with the inventory, it will just be the same iron sword. And they are worth so little at one point you can even stop picking them up as vendor trash.
- Most of the difference between magic items in the same tier comes from special skills and properties enchanted on them ("attack twice in a turn", "does double damage against enemies of this group", allow you to self-cast celerity once a day", "negates this sort of debuff", "raise this stat to value X", etc, etc.).
- items are designed one by one, the valuable ones are unique, hand-placed in the game world ad when you find them you can confide on the fact you'll carry them for a long time, if not for the entire adventure.
- Merchants also have a defined set of more or less valuable possessions in their inventory and they can occasionally add few more unique items after some specific circumstances.
Conversely, in D: OS1 and 2:
- items range is insane. You start from weapons doing 3-4 damage to end game shit dealing 600 or so. That's a more than 100X scaling factor.
- You drop them constantly, they are randomly generated and stats are ever-changing. This means every time you kill some shit it will be time for a busywork of comparison in your already crowded inventory.
- The above mentioned item range also implies that every time you are finding something cool, it will INEVITABLY be obsolete barely a couple of levels later. While I'm not a fan of this sort of system even in games like Diablo, it can work there because you pay attention to a single character and loot is the whole point. When you are managing a full party of four characters or more, on the other hand, the frequency at which you'll need to compare items and the one at which you'll be asked to replace them become WAY too much busywork to keep up with in an enjoyable manner.
- The randomized nature of item stats and their random placement works actively to damage the reward system in the game, especially when you have god tier stuff (for the next 15 minutes) dropping out of a random crate you inspected with "Lucky Charm" or popping up casually in a merchant inventory, while bosses drop useless garbage with stats misaligned for your needs or that will stop being useful in minutes, if you aren't out-leveling them already.
I could go on, but these are the salient points on why I feel "Diablo-styled" loot has absolutely no place in this subgenre.
And I can't overstate how glad I am we are AT LEAST past it in BG3.
P.S. and before you ask, yes, I'm copy-pasting entire paragraphs from some old shit I wrote. Fuck if I'm going to bother coming up with new ways of repeating the same shit 200 times.