Parmandur
Book-Friend, he/him
Are you kidding? Loot drops have always been somewhat problematic. How does the loot get there or come to be in the possession of the creatures you kill? Is the creature intelligent enough to hoard loot of its own intent? If so, what purpose does each piece of it serve? Is it utilitarian (like weaponry) or is it aesthetic (like art)? Or does it satisfy an atavistic impulse toward avarice (dragons and their beds of gold and gems)? If it's utilitarian, is that creature using it against the PCs or to further some project it is engaged in?
If not the intent of the creature (usually because the creature is too dumb), is it "incidental" treasure - something that the creature would have accumulated through predation of whatever comes by or whatever it encounters while on the prowl? If so, does it make sense that PCs would regularly get bona fide, regular upgrades from these treasure drops?
Loot drops and treasure tables frequently break all sorts of verisimilitude - in TTRPGs and computer games, for that matter. How many times did I find health kits by smashing apart wooden crates? Or find hidden stashes of stuff under flickering fluorescent lights? Yeah - they make the game more playable - but they sure as hell don't help verisimilitude.
A really good loot drop would integrate a helpful item in a totally innocuous way that makes it look like there's a backstory for exactly why that item is there without directly making it obvious that it's useful for a particular challenge later. Some of the Paizo APs are pretty damn good at this with a few well-placed items that totally made sense where they were and were potential life savers in later chapters.
Exactly: to be fair, this is DM side information, and with a live running the game, player versimillitude need not be broken: but the loot treadmill feeling is not to my taste.