Nah. Feels too MMO-ish like that. That, and it makes extra work for us with stuff like "You get a Longbow +1." "Can't use it, I toss it aside." or "You get X." "Too much weight, we've all got low Str scores and no extradimensional storage." It's taking agency away from the players without any meaningful streamlining. S'like making NPCs into either background fluff or plot dispensers who trigger DM cutscenes when spoken to.
Maybe it's just me, but the "kill mobs, get loot which is somehow perfectly tailored to your needs and level" is boring. Sure, it's sometimes nice to find a weapon which perfectly suits you, but there's more adventure to be found in things which don't perfectly suit a specific member of the party. Arbitrary or random magic items which we'll hang on to because they might be useful eventually. Stuff that's not targeted at a specific party member, and thus might provoke discussion re: "Who should get this, or should we sell it?", &c.
Also, just a touch of advice re: humanoid opponents like this: if a good chunk of the loot takes the form of equipment that the party can't use and doesn't want to carry, it's going to get left behind. Encumbrance penalties are bloody annoying, especially when there's no meatshield around and nobody has a mule or three.
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That said, if it gets to the point where it's like this and someone/everyone is hesitant to claim the last bit of useful/portable stuff, just grab it. Even if it's not perfectly equal every encounter, who cares? It'll level out sooner or later.