In the previous versions, it's all too common to end up wearing armour and equipment from your enemies
I sure did. Especially when I was just a struggling young mercenary trying to work my way up in the world. Once I had some income, then it was time to start coordinating my outfits.
This is moddable, no? So what we're really talking about is what level of loot Vanilla should feature in 1.0, right?
IMHO, the "way it was" is a great way to run the loot. Recovering at least as much as in .751 is realistic. The stuff is there, mostly in poor condition. If you're desperate, you cobble something together piece by piece (great fun!). If you're too proud, you sell that crap and save up for your dream duds. Even with plenty of loot it takes a hell of a lot of ass-whupping to pay for the better armours. Where's the problem? I never felt like I was making too much money in .751 (unless I had the arena mod installed

The elite will have a good cash flow, as it should be, but you need to put some resources in the hands of the average player as well.
Personally, I would like to see even more loot... It's inexplicable when there is so little to recuperate after an epic battle. Likewise when you manage to scoop someone's charger during a battle only to have it wander off when the battle finishes. Would more loot enable a level two character to go from 0-to-uber in five battles? Yes and no. The old-timer who has been at it since .611 or whatever will manage to get kitted out very quickly. Fine with me. Skill and experience as a player are rewarded (I hate games where these is a level requirement for equipment!). The power-gamer that will save and reload fifteen times in order to prevail against some dark knights with 10 peasants, a crossbow, and a steep hill will also get kitted out very quickly. Lame, but there's no point in fighting the power-gamer. The average gamer will have a great time, and will reap rewards appropriate to the risks that they take. They might also get lucky once in a while and find 2 dark knights all on their own. They will then do a happy dance at their computer - but isn't that what gaming is about anyways?
The Loot skill idea is kinda fun. Maybe bundle it in with Trade? Trade + Loot = Money Grubber or something like that...