as long as loot doesn't dramatically change the game nobody will care about it... it'll be nice to have that +2 dmg axe over the +1 dmg axe but you'll still be able to fight effectively with both and losing one won't discourage you so much..
you have to think about the TYPE of loot you're losing in a full loot system.. this isn't WoW style loot where you spend hours and hours to improve your character with a weapon...improving your character is done with maxxing skills and countering opponent's weaknesses..
think of a weapon this way.. i have 100% skill base which does 20 dmg.. the weapon adds 5dmg which is beneficial, another weapon adds 6 dmg which is better, but not so much that you're gonna spend your life trying to improve your previous weapon...
plus a full loot system will prevent those farmers from using their best weapons during pvp simply because there is the risk of losing them.. so the true pvpers will be even better and the skill will outweigh all the other factors
full loot is definately the only true pvp system worth playing
even other carebear subscribers won't be as upset losing their super awesome weapon because it won't be super awesome.. I just hope the greatest weapons and items in the game are simply mediocre at best
besides, the best stuff is supposed to be craftable anyway so everyone will have the best shit