I found a 5-7 (+20 magical damage) mace for sale at level 3 or so. A Level 2 required mace did 4-4 damage. Not long earlier I was running away from level 4 Skeletons, now I 2-shot them.
I also found a Legendary Bow at level 1 in Upton's basement. It didn't do much damage, but noticeably more that "My First Mace".
I think the Beholder Bounty boss dropped a bracelet it gave me +2 to Magic Blast - a Level 8 skill. That was at like level 3 or so. I can one-shot anything nasty.
The thrill of finding loot is back, and that is a good thing, at least. Although the Steam version definitely makes things easier, because you start off with 3 complete sets in your inventory, and you can sell the two you don't want right away.
I'm not even out of the first part, so I'll leave judgment on how overpowered this stuff is until later. Honestly, though, right now it's fun finding such amazing loot.