Get rid of the level cap. They have already build in caps into the damage
and item will do at different level. As for the No Drop think about this I
have a cleric. I get the follow a Bloodforge Hammer, a Screaming Mace and a
Shining Star of Life all of which I love to but for different Mobs. So if
you make them No Drop what do I do Carry them around with me all the time.

Another Import thing what if you DIE no one can loot your No Drop items from
your body for you.