Reward, gold, gear.
1. Experience gain and loot.
1.1. Remove experience gain from kills and persuations at all. Give experience for completing stages of quests, short events and passing checkpoints on the map.
It's already said enough times that killing everything is much more rewarding than finding peaceful solutions. In the same time it can be way too complicated math to create equal rewarding for different solutions and somehow consider that after peaceful solution we still can kill everyone and gain even more experience. I'm suggesting to give experience only for achieving some goals instead of using methods. So it would not matter how we got things done, if we got them done we have our sweet exp.
1.2. Remove armor loot from killing enemies or replace it with scraps.
It should mitigate killing spree being a farming gold possibility. Plus it's improvement to realism, armor supposed to be damaged after our smacking the enemy to the death.
2. Economics.
2.1. Adjust prices and markup at vendors, please.
It's normal not to be able to buy an armor easily so early in the game, but right now to buy a few arrows, we need to loot every piece of junk and that's not fun at all. I suppose the price we can see on a tooltips is the first cost, It should be lower for ammo and potions.
2.2. Return spell components to high lvl/expensive spells at least and add those components to vendors.
With out enough of money sinks, being able to loot everything and finding most of best gear in loot and quest rewards, we will eventually get to the point in game when "I have more gold than I'll ever spend". And that removes normal reason for playing greedy at some moments.
To avoid inventory flooding components can be represented by one item, "Components purse" with limited amount of uses (~20 casts), and possibility to "refill" at vendors or find refillers in loot. Actually components for lower spells can be made same way in "Minor components purse" item with lower refill price and higher loot chance.