" we were talking about quality loot." What is the quality loot? Probably a loot which is better then you are wearing. Is that mean that correct loot generator must create better loot after each battle?
The problem being there is not enough "different" loot. It should not actually create better loot, but there should be enough parameters in the randomization so that you could find different (thus at some point interesting) loot. Having found the XXXth ring and amulet with Loremaster +1, I must say i'll just have anything else at this point...