I think the core problem here tends to be economies that revolve around murdering enormously large numbers of enemies. In a typical vidya game tutorial, you might kill like a hundred dudes. I've killed a fair number of dudes in my life, but a vidya game character kills more dudes than I've ever killed in my entire career of dude-killing in just the fucking tutorial. Clearly, the willingness of dudes to die at the player's hands is simply grossly excessive. Do they somehow think battles are just not impressive and intense enough if the player doesn't get to kill a hundred dudes? Cuz I can tell you, I've never fought a battle in which I thought, "Gee, if only I killed more dudes." If the game doesn't want to have to resort to hokey means of not handing out tons of killed dudes worth of wargear to players, maybe stop having them actually kill hundreds of dudes.
The thing with real fights is that the victory conditions for winning the fight are pretty much never "kill all the enemy's dudes" and enemies will give up the fight well before nearly all of their dudes are killed and the situation has become unwinnable. In fact, in real fights, the losing side would likely have easily won the fight if only all of their dudes were more willing to die for the cause. The thing is, they aren't. Thus, video game balance has fights all wrong: Most fights should be pretty much unwinnable from a "kill all dudes" position. But the enemy will give up the fight well before all dudes are killed because they don't want to become killed dudes in the process, and if you attempt to pursue the fight as "kill all dudes" exercise, you would get killed. And if you are killed, you have lost a very important part of your life.