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I kinda wish they reimplement the degradation system (= max durability of an item lower every time it gets repaired) : it would make crafting more relevant again (since currently, once you have a good item, you keep it forever unless you find something even better), and also bring more uses to some armor bonuses (like the nerd's set that lower item degradation's rate).
I think if you turn loot down to 50%, or less, that might fix the issue for you. And, to be honest, you could just craft your own items. In other words, just don't buy those items from the trader. Obviously that's just a solution for single player, but you didn't say whether you were referring to single player or multiplayer.
I do think if you quickly leave the forest and start looting in tougher biomes in high tier POIs then you probably do find a lot of gear that is better than you can craft since those places have a lootstage buff. I don't know if that is what you are doing or not.
You're right that the trader is the main culprit though. I hope the planned overvhaul will adjust the prices and lower the higher-tier items available compared to your level.
I think bringing back the degradation after repair (not level, only max durability) would fit with the state of the game. Lucky loot would then only be a temporary gear boost as their durability will eventually become too low from using them too much/long.
It's just my opinion at the end of the day, I guess I wish the game revolved a bit more about crafting than looting (i.e not looting full items as often. Crafting is still their ofc but mostly for ammo and base building, and less needed for weapons and gears).
I craft almost 100% of my gear once I get past the initial early game stages. The first day or so I use whatever I loot, but after that I can usually craft much better gear than I find. In a typical game I can max out a couple crafting skills by around day 14, then it is just a matter of finding enough parts to build the gear.
It depends entirely on what you are looting. For example, early game I focus on finding and looting book stores or specific POIs that have a higher chance for the loot I want instead of running quests and because of that I can very rapidly increase my crafting skills but at the same time I don't really find other loot, just books and magazines. Since I am getting more specifically targeted loot rather than general loot my crafting ability quickly outpaces my game stage.
Which actually leads to the other problem of why do a trader quest or raid a high level POI since you don't really get much out of it. There is nothing special about T5 and T6 POIs compared to what you can get in much lower ones for far less ammo.
Should only be able to find the T6 crafting supplies in High level POIs chests. That would at least force you to raid them upgrade your equipment.
It's an improvement for crafting but I agree with OP that they could go further than that to promote even more crafting, especially with traders (force lower Quality, higher prices, and such).
Some people completely ignore trader quests, so the fact the trader has all that sweet loot is completely pointless to them. They don't sell or buy from the trader.
Other people stripmine entire towns, breaking down every car, stove, fridge, etc for parts. Also another playstyle.
How I view it is OP doesn't want to remove any playstyle.
It's about not having one erasing another, specifically not having loot beating the need to craft. The challenge of the devs is to make loot and crafting progress (and traders) at about the same pace or there's no point crafting anything.
The trader is the main issue, because I love to play around trader (i.e gathering money and spend it wisely to get what I need for a bloodmoon, the quests in general...), but the prices and available items often make it broken compared to the rest of your progression (a lvl 4 sledge hammer for around 5k dukes as base price is so cheap compared to the crafting requirements in books and resources).
Each level of the perk adds 10 to your trader stage which can quickly unbalance trader inventory selection vs loot at early stages of the game. For comparison the Lucky Looter perk is a percentage modifier rather than a flat increase so the effect is opposite, it doesn't do much early game but in the later stages of the game it can have an impact.
Here is the calculation for trader stage: (player_level * (1+quest_tier_mod)) + (DA * 10)
That can have a disproportionately large impact early on, particularly when you consider you can max out DA as early as level 17 if you dump all your points into INT and DA, or level 14 if you find an INT armor mod. You can have a trader stage of 60 while at the same time a loot stage of only 20. Even if you went into the wasteland at level 20 you'd only have a loot stage of 50, but with DA you can sit in the forest and buy better loot without the risk.
Then there is the issue with how gear unlocks in a trader's inventory.
Most items have a trader stage template that has a min and max value for trader stage that controls when it will be available to be selected for the inventory.
Here is the template for "baseTier1", which includes iron tools, straight from the XML:
<traderstage_template name="baseTier1"> <!-- Iron Tools|T1 Weapons|T1 Explosives -->
<entry min="1" max="999999" quality="0"/> <!-- Fallback for items without quality -->
<entry min="15" max="40" quality="1"/>
<entry min="30" max="50" quality="2"/>
<entry min="40" max="60" quality="3"/>
<entry min="50" max="70" quality="4"/>
<entry min="60" max="70" quality="5"/>
</traderstage_template>
This means a Q3 iron pickaxe won't show up in the trader's inventory until you have a 40 trader stage, and it will no longer be available once you hit 60.
The problem is that this steady progression where you unlock new quality levels as you increase your trader stage is only used for baseTier0 and baseTier1 items, basically stone and iron. Once you hit steel TFP decided ALL quality levels should unlock at once for some reason.
Here is the XML for baseTier2:
<traderstage_template name="baseTier2"> <!-- Steel Tools|T2 Weapons|T2 Explosives -->
<entry min="1" max="999999" quality="0"/> <!-- Fallback for items without quality -->
<entry min="50" max="999999" quality="1"/>
<entry min="50" max="999999" quality="2"/>
<entry min="50" max="999999" quality="3"/>
<entry min="50" max="999999" quality="4"/>
<entry min="50" max="999999" quality="5"/>
</traderstage_template>
At trader stage 50 they won't even sell Q5 iron tools yet (see the baseTier1 template above), but they have the potential to sell Q5 steel tools because steel uses the baseTier2 template. That seems busted to me.
It makes no sense that the template for "baseTier2" items is the same for all quality levels, particularly when you can get a +40 bonus to your trader stage from the DA skill which means you can hit that minimum trader stage point as early as level 17 (14 with mod) without ever having completed a single quest.
It makes no sense even without DA, but with DA it just seems broken.
Sorry for the rant, but this is just so frustratingly unbalanced.