In Witcher 3, enemies constantly drop swords & armour. They're certainly not dropping *everything* like hats and socks, but they reliably drop weapons and other bits of equipment connected to what they were actually using. If you kill someone wearing heavy armour, it's pretty safe to say he'll drop some armour.

There were problems in Bethesda games looting sytem, but no worse than already exists in Larian's "pick up every seashell" loot system.