I pick up everything, but i gladly throw it back out after combat for people who need it. It's how it works with my friends and i.
That's still kind of stupid, consider this, lets say you pick up everything, ranger armor drops, no one is a ranger, then repeat with everything everyone wont need, now you just made money and the others did not, now repeat this for many levels and now you're rich while the others are poor, here's the thing though, unless a conversation on money comes up, you nor they will know how much everyone has and that they are poor vs you.