If you would never lose your armor or weapons when you die, everyone would walk in CA/BA sooner or later. And it's not how the Fallout world looked like as far as I remember...
the idea sucks, but i would like it to be made, that when you die with ba lets say, noone can pick it, it just dissapear together with your body. :>
Items that disappeared with you dying would reduce the amount of item saturation in FOnline world, but reduce fun for people who pvp. Maybe a middle ground? Like someone mentioned one item, only dropping a single random on death and having the rest destroyed.
This way people will still get loot from killing and if you die in CA you don't have to spend 2 days making a new one.
Worst suggestion ever.