There are many ways to work up loot drops. How it's done on one server does not mean much to how it's done on another, so assumptions should not be made one way or the other. The way we do it here is that loot drops are divided into low, medium, high and epic groupings, and then chosen randomly based on the creature's CR. It's a simple and generally effective strategy and easy to set up and maintain, though with its occasional quirks, like skeletons committing suicide by drinking healing potions. *chuckles*
Having said that, we're working on something different, along the lines of creature types/locations/sizes, etc. Systems like that though are rather complex and it will take some time. Until then, let's work and think within the boundaries of what we have set up at the moment.
For this thread in general, it would be vastly better for all involved to bring this up in the context of a bug when it seems like loot drops are too high or creatures spawn in with unusually strong equipment that they then use against players.
Though it's funny...we never hear complaints when someone actually picks up a loot drop that's unbalanced for the creature from which it came...