I imagine that this approach comes down to a balancing issue.
I dont think so ...
You can still sell your things and then steal them back, so if ballance is the issue here ... the problem prevails.
It even gets worse, since you can sell all your stuff, steal them back, kill the NPC (wich spawns him aditional items) and loot it ... so in the end you have even more gold.

Larian would need to balance the difficulty of their combats around players getting a lot of potentially powerful gear.
Im not really sure what you mean, Vendors rarely have anything so much gamechanging to my knowledge. O_o
Also, all item that are buyable/stealable/lootable ... should be concidered to overall ballance, since players will have them. O_o
And if we include your suggestion about quest rewards then that could get even worse, because then that would mean a bunch of occasions where our character could get two different potentially powerful reward items
Indeed ...
I didnt realized until you write this that Larian still have that odd "pick your reward" thing. :-/
That would indeed need to change somehow ...
if we have to choose between supporting two factions again like we have here in act one.
On the other hand this i disagree with ...
Quite the oposite, situation where we need to pick between factions are exactly the reason why i would like to get same rewards in the end.
Take Glut for example ...
If you betray Sovereign and kill him ... Glut gives you quite nice ring that adds +1 to any Fire Spell damage you make ... its nothing Earthshatering i admit, but its the only way to obtain this item. :-/
I wonder where did that mushroom take it from, since its not in its inventory?
One could say that i find it immersion breaking when items appear out of nowhere. :-/
But quite honestly i would be satisfied if Sovereign would just say "we have found this on his body, take it as reward" ... giving us the same reward as Glut.
Same goes with Goblins/Tieflings ...
Interesting is that Zevlor offers you two rewards ... one is gloves that he have in his inventory and you can buy them ... another is some headpiece that looks awfully druidic, and materialize once again out of thin air. :-/
Note that im perfectly fine with different NPCs having different loot ...
That is okey, understandable and it makes sense on all fronts ... what i dislike are theese quest rewards that appear out of nowhere.
To avoid that they'd have to find ways to justify them not having the item anywhere we could easily get to it
Honestly?
I dont see why.
