Right! It's obnoxious, with one character I had the starting leather armor was better than anything I could find for hours and hours of game play and when I finally found a better armor, it was like 20k. Insanity. Enemy units only drop helmets, gauntlets, and boots.
I also have 3 points in charm, I have gained relations with tons of city and town people, but I am certain it is broken. I have an 18 hour game and not one xp gained. I have even completed tasks for nobles and the top banner said I gained 5 in one case and lost 5 in another that I failed. I then talked with that lord and it was still zero relation. I have tried to woo a lord and succeeded in persuasion attempts but still have a zero relation and no xp gained. Something is broken about the Lord relations and charm attribute.