Good thread, I agree the scaling is out of control. Kudos the Baardvark for being the all-star modder for this game
I think itemization must be a hard problem to solve, because I see case after case of games doing a poor job of it. I suspect too many are looking to Diablo when they should be looking to Baldur's Gate 2.
I would go a step further after fixing the scaling:
-Limit vendors to only stocking green items.
-Change lucky find to only create consumable stuff in containers. It makes no sense for epic weapons and armor to be sitting in fish barrels.
Then you would actually care when you picked up high tier loot from bosses and chests, which is how it should be! You couldn't make these changes now because you'd be horribly undergeared, but with the scaling under control it might be possible.