Well, you have to consider that the whole scene is gimped because when you subdue or kill them, that weapon they were swinging around, that armor they were wearing, that shield they were cowering behind ... *poof* ... magically disappears.I'm not too worried about whether or not it's gimped. I've been getting along fine enough with it as it is.
I think it is also important to consider the wealth standards, and how the PCs ingame are actually well below the standards... meaning that the PCs are being denied potential wealth and everyone is running about far more poor than they should be. And yes, these subjects are being addressed, to some extent... but to address the wealth standards, we cannot ignore an obvious nerf.