I should preface this by stating that it's my personal opinion on the matter, not any rule or group-decision on the staffs part.

Most characters could justify in their roleplay full-looting all their kills. They don't because it's incredibly harsh on the person you just killed, and majorly unfun for the player. And we're all here to have fun. Right?

Now, if you just whacked a decked-out Dulmisa one-on-one with two Balator practice weapons and a captain's hat, maybe you full loot. (Sorry Dulmisa!) But if Dulmisa and five of her friends whack that poor lone dude who has 6 pieces of crap gear and some berrie pies, then loot all of his measely stuff that they have no use for... I would argue that that's completely different, and really kinda makes you a jerk. Obviously there is a lot of inbetween that doesn't fit into either of these extremes, but I think we can all get the point.

I think that sums it up.

Aarn!