It is risky to argue that a feature, because it is contained in a popular game, is automatically a good feature. A feature lives in the context of a whole game. It might be good in one game and very bad in an other game.
I agree. Which is why I am not making that argument. I am only stating a fact that seem to be overlooked by the previous two posters. (and I didn't realized I spammed the same reply twice because it was very early in the morning )
You need to define the context with this in mind. E.g. if your items are really generic, drops often and are just more like tools, then item drop is really ok. On the other hand, if you have many unique items (to which the players get attached), seldom item drop and equipment which serves as instrument to make the character unique and special, then item drop could be very frustrating.
I think Runescape got away with haqving item-drop-on-death and unique/special equipment by allowing for 3/4 items to be saved. This allows generic drops to be sacrificed and avoid frustrating players by making them lose unique/special items. (Realm of the Mad God, on the other hand, tend to be more niche and hardcore than Runescape because they force you to lose your unique/special equipment)
Do you think allowing for 3/4 saves is a good way to do it? Or would it be better to simply not have unique/special/rare items?