I'm not really sure why it was nerfed, to be honest. The item churn in this game is UNREAL, and lucky charm helped with making the item churn a little less awful, as it reduced the need to be attached to gear vendors 24/7 trying to find something your level with stats on it that didn't suck for your build. Still all RNG, as all the items you find with LC could still be worthless for your builds, but it is another source for potential upgrades.
I know that after I finish this playthrough, I am 100% going to try the zero scaling mod, as I am sick TO DEATH of scouring the vendors basically every reset trying to find upgrades. I wanna be able to use things like Lohar's hammer and Hanal Lechet for more than 20 minutes without missing out on some massive damage upgrade off of Random_Melee_35.