Update time, posting it here motivated me to look for it further and I made it work!
What I did so you can do it yourself:
You need a notepad to open the files in italic
The player will not drop items on death anymore:
-Go to replication.fos, line 458
-Delete or comment out lines 458 to 462
Npcs will not loot the dead players anymore:
-Go to main.fos, line 2374
-Replace (cr.IsPlayer() || IsHumanoid(cr))
by (!cr.IsPlayer() && IsHumanoid(cr))
(Not tested in game but the server launch at least)
Brutal deaths will not destroy armor, helmet or trophies anymore (npcs included):
-Go to main.fos, line 2297
-Delete or comment out line 2297 and 2298 (armor), 2302 and 2303 (helmet), 2308 and 2309 (trophies)
Brutal deaths will not drops all items on the ground anymore (npcs included):
-Go to main.fos, line 2354
- Delete or comment out line 2354 and 2355
There are for sure cleaner methods to do so but it will work for us for the time being, if you've got any questions I may try to answer them.
Edit: I can't guarantee anything against unforseen side effects