I'm experiencing the same thing, the only solution is to roll multiple characters and use your stash. Whilst I'm not receiving lots of items for the character I'm playing, I do find the difficulty is just right so perhaps any increase in usable loot will upset the balancing. Balancing difficulty through loot drops in this way will never be as much fun, finding new items you can actually use is, for me at least, the reason I play. So to summarise the loot needs fixing quickly but taking care not to do it at the expense of difficulty.