but exactly how random is the loot system? is it a hybrid combining both static drops (for major quest encounters and named enemies) and random drops in the wild, or does it scale with the area we're at (like sliver said) or just totally random? So far it seems to be totally random.

sure, i don't have to reload if i don't want to - but that doesn't mean i like going through a massive boss fight for some health potions. hopefully this is not the case.