Very nice!

I did always like that 2nd ed. mindset. They are meaningful enough that even if you pictured your fighter using a longsword and a magical battleaxe drops then you would consider or actually switch to using the battleaxe. Instead of just selling it and buying a magical longsword.

It always seemed like we should have gotten rid of loot in 3.5 and just awarded gold. We ended up selling most items anyway and buying what we considered 'optimized'. I would definitely like to see more non-weapon/stat/armor items in use. Things like figurines of wonderous power or cloaks/boots that provided unique and different play options.