agreed, both good points that could be improved and make loot better.

One thing I also think to make items more varied is to allow them to have a Talent not just skill, stat, or status effects, only on a legendary high level item probably, and not instead of all the other abilities but in addition to them.

The more I play this time through the more I wish my Knight's 2-handed sword from 4 levels ago would also have leveled up or it's powers could have been transferred to a new higher level sword.
Damge from the weapon is much less than a lower quality higher level equivalent item.

Loremaster +1 and any elemental resistance especially earth below 50% is a wasted slot.