I think that's normal, especially earlier in the game - although I can't comment on it being nerfed since ED.
There are some chests that have really good loot, but they're usually involve a complex puzzle to reach (e.g. there's a cave in Orobas that has puzzles involving platform and fireballs, as well as candles and books - the chests that appeared had excellet loot items).
The gold chests scattered across the flying fortress platforms also usually gave pretty decent items. Also loot is apparently based on the character level as well as the level of the chest, so loot will improve as you level up.
