I'm torn. I don't think hard earned items should drop purely as you lose to a more powerful opponent. Look at Marble, you had Assassins that could pop up and nuke you before you could do anything (i'm not discussing this here, it's just an example).
It's too much strain on Jamie having to ensure that losing an item due to situations outside of the users realistic control. It tremendously increases the difficulty of balancing, and increases the level of displeasure a user gets when such a situation arises.
Go knowingly to battle in your best gear? Fine. Your choice. Stand around and fight for minutes and get unlucky and die? Fine. Your choice. Get ganked and jumped just as you take a swig of juice, or the aforementioned 'ninja pop'? Game freezes or drops out? It's harsh, which is presumably the primary focus of Jamie's design philosophy here.
On the other hand, it's Mir and body drops has arguably been the core factor in making the game such a draw to PVP orientated players. They aren't the only players yes, but it's is the biggest draw for them who play for that reason.
Why not a muddle of solutions?
1) Have body drops, but also protected items. Either pre-determined slots for protection, or even items. Or let the player have '2' slots they can protect, or (my very least favourite option) pay a cost to protect a slot or item (please god no).
2) Rather than drops, have the items equipped potentially get 'damaged'. Doesn't have to be dura, could be a new system (akin to cursing the item, or maybe just as simple as "Item is permanently damaged as a result of recent loss in battle, the next time you die it may drop properly")
3) When actively engaged in PVP, an internal cooldown/timer starts. The longer you stay in battle the more likely items are to drop. This is reset by killing an opponent. -- If it's not a fight you can win, or you get ganked, very low chance of dropping. You stay around and fight, well then you made the choice. This is the closest to present Mir2 but adds a layer of protection incase instant gank tactics rear their head.
Ultimately though, I'm not voting as I do not sway to any option more than the other. I'll play it however it comes.