I think it's fair to say MOST players dislike the looting system in one way or another. Yes, there is the choice of going Moderate, but for that comes with it's own perks and nerfs, decidedly so for the benefit of the player and others around them.
My suggestion is this:
Keep Moderate for those people who are either new or do not put as much emphasis on PKing rather than RPing.
For Ruthless:
From lvl 15-20, if you kill someone you can only loot 1 rare from their corpse. Don't make it like moderate where if they come back into pk they have to engage you and so on in order for you to fight and kill them for more loot. Hence you are Ruthless, if they are willing to stay on and you are enemies, expect your enemy to attempt your head.
From there up you make the loot system like that of the rare holding system.
From 20-29 you can loot 2 Rare items from a player you kill.
From 30-39 you can loot 3 Rare items from a player you kill.
From 40-49 you can loot 4 Rare items from a player you kill.
And finally at 50 you can loot 5 Rare items from a player you kill.
The reason I believe we should change this is that for some people attaining rares is an extremely easy task, mob wise, and for other classes it is extremely easy to just find a class that is easily defeated by your class and get loot that way. Then there are the classes where it takes you quite a bit of time to get certain items, or even a full "decent" suit of gear. Only to run into your classes weakness and if they are "evil" or an extremely "mean" player as some people refer to others as, you die to them, and they mostly or FULL loot you and sac you. It is irritating enough to lose your bags, gold and other non-rare items you require to pk/survive, but to also become naked does make quite a bit of people rage quit and in some occasions completely quit their character as a whole. Losing 5 rares at 50 against someone would not make me rage quit a character, maybe make me log off for a little bit but in my personal experience, I have lost a full suit to someone that was able to rip me to shreds based on our class differences and that character was shelved for quite sometime.
Back before I quit, people used to pull the "don't go ruthless if you don't want to lose all your gear" statement, but I think it's fair to say at this point in where FL is, MOST of us are ruthless and in full looted we either shelf or rage quit. A lot of time is put into our characters already in terms of RP, leveling, training, gathering consumables, and rares, then to have it all smashed to pieces with one PK, that is QUITE demoralizing for most of us.
What does everyone think??? This would definitely get rid of the negative stigma that many players get when they are the full-looters since it will no longer be an option at all.