Work and kids has kept me busy. One thing that you keep going back to is there was no RP, no interaction involved when some random dude snagged your stuff. My question to you is if you had gotten a tell from random orc saying "Thanks for be dumb dumb, me eat meow steak and wear guts with armor." Would that be a positive experience to you? The end result would have been the same (you losing items) but you would have been getting mocked by the RP interaction (which seems to be your concern that it wasn't there).

Personally, I'd rather just lose the items and move on without having to hear about how lame I am for mob dying by some lowbie who happened to be going past.