1. Are you sure the items didn't poof because they were over their max? The maximum number of a limited item varies according to various factors (let's pretend one is number of characters over level 30). So if that number drops, then it can reduce the max number of the item in the game. Then when someone with that item dies, the mud checks to see whether there are too many such items and makes it go up in smoke if it is. So no one being an asshole in this situation.

2. Some areas the mobs loot stuff. Our certain kinds of stuff.

3. Were you potentially disarmed before you died?

4. In fairness, if someone can use the gear, they probably will loot and that's fine even if it sucks for you.