Actually I also reduced loot income & mercenary contract income 15% at 1.5.7 did not mentioned it in previous post. Its a minor reduce but will make things a bit better. Also as you said loot income was huge compared other income resources (fief taxes - caravan income - workshop income)
However players can complain about it because we are nerfing things which players already get used to but this was obvious they were OP. Still crafting exploit is not fixed unfortunately. I have no control over these parts so cannot fix.
Still of course winner side take good amount of loot and plunder money (10% of money of lost leaders). Nothing to do at this point this is the basic of game.
Also imo high tier item prices should be lowered. There are items for 100-200-300K. This was normal when game was not balanced but currently making 100Ks is not easy as old days if you do not make crafting exploit.
Here is 1.5.7 expected value of loot per killed troop formula, items drop according to that expected formula, still 10000 value item can drop of course but expected total value of dropped items are determined by this formula. I lowered 0.5 x from 0.6 x here.
(you should divide formula value to 4 because of high trade penalty at equipments,
so if you kill 10 looter (level-6) expected loot value you will get is (10 x (0.5 x (50 x 6 x 6))) / 4 = 107, according to old formula it was 10 x (0.6 x (50 x 6 x 6)) / 4 = 129)