I agree random loot takes the reward out of exploration and is also worse in a game like this when the mobs are limited and do not respawn. This type of loot system works better for something like Diablo where the mobs respawn and you know you are going to keep running the area over and over because that is what the game is. However, in an rpg such as this it breaks risk/reward.
In DD I hated the random stats on dragon armor pieces. I also did not like in one case where I was fighting in an orc camp got a random epic off of a guard went a few stepps a mini boss came out and I got crap off of it. I use to read forums where people said they knew where items were and would save and load until they got the stats they wanted on the item, including skill books that could be on a bookcase. This seems to defeat the purpose to me if you just load and reload until you get what you want.