My idea would be to make items like 1/30 chance to drop altogether, and instead of items, most mobs would drop components (Scrap, Shard, Fragment, Component, Nanoshard a bit rarer). It's more in line with usual RPG drop lists, unlike now, when the most basic zombie has something for you.
At least, that's what I prefer. It would also solve the bag space shortage.
Also, items crafted could be made to cost ten times more materials, and upgrading them could cost five times more, which would make them fast-moving goods.
This is also one way to make the drops more logical.
EDIT: Yeah, after quite a long gametime, I can confirm it. And that's also a reply for the bigger Ancient Blood areas.
I just had a run in Ancient Blood. WoW style inventory activated, only 5 slots were taken up permanently (for quest items and cube). Once AB was cleared, I had to leave, empty my full inventory, then go back, and what I left on the floor filled my inventory a second time (7 slots remained). This with no Crazy Slayer.
For players like me, CS is not feasible, as I tend to pick up everything that drops. Though my new char has 1kk money after 10 hours of gameplay (and the disassemble 1000 items achievement), I either leave things on the ground (I'd rather not), or something has to be done. Otherwise, I can forget CS (as much as I enjoy it).
I think normal monsters should at most drop consumables and various fragments, whereas non-normal (Berserker, Ghostly, Champion, Zealot, Named, Unique, Mutant, Boss) monsters should be the only ones that drop whole items, and maybe chests (destructibles like boxes and containers should also only drop fragments). It would make much more sense. As for drop chances, that's fine with me - I don't use the remove lower item qualities, but I do use Unique Extra and Mythic Boost. Also, making costs of crafting and forging items higher would balance out the high amount of materials nicely, giving it more reason to exist.
Of course, this would impact Palladium rates (items sell for way more than components), but people would be able to spend more time grinding thousands of mobs (=fun), and less time gawking at the merchant (=chore), and there's way too much Palladium to spend, and way too few things to spend it on anyway.
Dank, is that option feasible? I don't know how much tuning should go into that, but it might be easy to implement as an option for all I know ...