As far as RP and OOC knowledge goes...
aren't you supposed to NOT know that a character will come back from the dead? So, taking his stuff for the sake of not making it easier for him to get revenge becomes moot. You don't know the gods have granted him another life, so why take his stuff if you don't need it?
Consequently, if the limit on the amount of objects a character could carry were changed... this might change the whole fact altogether. But, that is such a drastic ideal for something that is not broke. The system has worked thus far.
Basically, whether it is OOC or not, if it is bad RP or not, or classy or not, it doesn't matter. It's all debatable. The game would not run, as Mudder said, without OOC knowledge. What it comes down to is how players play FL.
Do they considered it a Hack'n'Slash? Most do. So just go into a room swinging around and only consider it fun when body parts are flying.
Do they considered an RPG? Fewer do. Go talk to someone, then only once you've met the person/talked to them/found something out then you attack, if it heightens RP.
Neither one is inherently "bad" or "better" than the other, but as it stands, the Staff has always (since 1.0) encouraged both mind sets and allowed each player to take up their standard and stance.
a-g
Edit: As for looting corpses you didn't kill. If you feel it fits your RP, then go ahead and do it. There are no rules against it (there are actually time limits imposed on who can loot what corpses and when), so if you're below a certain level and find a buncha shinies within arms reach... clean off the brain matter and slap 'em on! You'll just make yourself a target later. But, maybe you'll be able to fight them off with your new gear?
