The key phrase is "situations that they encounter."
You're a plowboy who just bought his first real weapon and armor. A week later, you find yourself clanking around in the dark, hundreds of feet below the earth...and something's tentacles whip out of the even deeper darkness of an underground chasm to drag off the Gnome thief and the first thing you reach for is hootch?
I'm calling shenanigans.
St. Cuthbert of the Cudgel willing, you are not "a plowboy who just bought his first
real weapon and armor". Because, in 1e anyway, if you are a normal man (and not someone who, say, trained as a fighter or something), you can kiss your adventuring career goodbye.
In 3e, I am guessing that a Commoner 1 is also in trouble.
Moreover, if I am a 1st level fighter and the DM says "something's tentacles whip out of the even deeper darkness of an underground chasm to drag off the Gnome thief", I am going to assume that the 1st level thief is a goner, and my first thought is
run!
(I might hit the hooch later, to calm my nerves.)
How would metagaming tell the players which of myraid tentacled monsters they were facing, anyway? Only reading the DM's notes would do that, and that is something I frown upon.
RC