World changing around you, rats or imps going extinct, giants and trolls suddenly appearing in every hole, that also stinks. Bandits in rare gear is the same thing.
Things have to make sense if you're supposed to immerse and enjoy the gameworld.
Hand placed loot is fun once. The next time you play it stinks. You know where everything is. Now your character has godly information in his/her head that's not supposed to be in there.
My suggestion for hand placed loot: Have 1000 hand placed item locations in the game world for unique items, then have all the 100 items randomly scattered around for every new game. You would only have 10% chance to find any item in the same spot you found something with your 2nd character, and you will find stuff in places that were empty before.