I remember making houses out of pillows in Morrowind. Elder Scrolls games aren't really a good example of having a good balance, I think. Original BG games had way too much mundane loot available imo, too
I actually think both were fine. After a while you just learn to ignore the baskets and the mundane weapons. (And this is said by a hoarder player who has trouble leaving anything not bolted to the floor.)
+1
I see "less useless stuff" making the rounds but the useless stuff really does increase immersion for me. I really do want to find dried out inkpots and to wonder "how did this silver bowl get mixed in with these wooden cups"? Hmm.
So much of the mythology of the drow was built upon a just words in the original module where you find that the drow drink out of crystal glasses.
Also @firesnakearies ' "pen is mighter than the sword" build was funny enough that it belongs in the final game.
I agree, I love it when the game allows you to interact with objects - makes the world feel more "real". Yes, I can knock over that vase. It's not inexplicably unbreakable and not stuck to the table with magical glue. I can also steal the vase. Or smash it on the head of that horrified shopkeeper, should I so desire.
And yes, you can also do a lot of subtle environmental storytelling with those. It can be amazing if done well.