Ignoring class balancing (which isn't an issue as much a never ending process), gear seems to be the big issue.
In story after story, the great ring / the magic sword / the hoobajoob of probing is either taken from the conquered foe or lost to time. Could that help with some of the gear issues?
What would that look like?
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Instead of just making more rares, make more uniques. I don't mean that the item X should have more copies. I mean that more rares should be turned into single copy uniques - a lot more. What if the top 10% of gear was limited to 1 copy? (10% is just an example.)
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The problem then is how do we keep said items in circulation? Uniques could/would/should behave differently. After a pdeath, uniques would appear on the ground in a bag only accessible by the killer. After 3-4 ticks, any gear not picked up disappears.
Additional ideas
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Any gear that disappears reappears on a random mob (at least for gear found on mobs). Could be limited by area or mob rank... or not. It might be interesting to test security through obscurity.
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Gear doesn't immediately reappear. You can't just go kill Bob twice to get Bob's magic hoobajoob. But waiting for the purge might be too long to wait. Force players to explore.
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Maybe add a board announcing when items are back in the lands. Or a bard sharing rumors. Buy him a beer and he'll say "I heard that someone saw the Hoobajoob in Haon Dor".