“And at least in D2, if you had unlimited space, you’d have unlimited charms, and thus UNLIMITED POWAH. ”

fixed.

Example:

You wander through a ruined mountain town. There are pickups everywhere, from old empty lanterns hanging on the walls to boards you can pry loose to use as clubs. The most anal-retentive players will clean out the town, stripping everything that they can interact with and selling it even though it might fetch zero currency. Then again, other players will pass it all by, grab what they need right then, maybe a couple pieces of valuable loot, and move on.

The problem with Diablo is that you end up finding a full load of loot that has about a 5% chance of being something you want to use, but a 60% chance of being something worth selling. Because of this, most people don’t bother checking the value of things they pick up since so much of it is valuable.

Morrowind did it right. If you cared, you could clean out every little thing in every cave, dungeon, and house. You could pick flowers all day. There was enough junk in a single house out in the swamp to load you down. But it wasn’t worth taking back, so you generally left it.

Except the really nice pieces. And you could totally tell what was worth taking and what wasn’t. Steel armor? Meh. Ebony longsword? YES MOAR PLZ

I think the idea of always-existant inventory is a great one. Solves all the problems of pickpocketing too. Plus your carried / worn equipment can take damage from incoming attacks in a predictable manner. No longer do you need to have an “armor” stat based on what armor you’re wearing. If the incoming attack hits your armor, it will damage the armor and possibly penetrate to hit you. You can choose to not wear a helmet for better visibility, or not wear gauntlets so you can use your bow and pick locks easier. But if you get hit in the hands, it effectively bypasses your armor.
And if you’re carrying a backpack full of GP, you’re better-protected from behind. But someone could hit your pack and make all the shineys spill out!

I want to play that game. Tell Blizzard to spend some of their shiny gold rocks on a truly revolutionary game and see how many people leave WoW.

Wait, are you serious? Certainly, WoW has a lot of space for items, but remember that people generally play MMOGs for a long time. If you want to keep vanity items, old quest rewards and gear you like, different sets to use, and who knows how many trinkets, reagents, tradeskill-related items, tokens (I get a headache just thinking about all the tokens), mounts, quest items..

Let’s just say that given the type of game, I think that WoW doesn’t have that much space available at all if you disregard the use of alts for storage purposes.