Not to dismiss your suggestion but I'd like to put my vote on this. It does serve the purpose of letting you know what you just picked up but I much prefer the current feature that lets you do the same, which is to sort on Last added.
The benefit of sorting on the last added items is that you get to know which the new items are in one action, where as blinking items has to be moused over one at the time. But the really bad thing with blinking items is that they are distracting and want your attention rather than you choosing what to give attention to. When I see blinking items in other games I feel as if the items (or game designers) have an attention disorder.
