Yes my monsters drop a lot of items as well, I use Blizzard's multi-drop, so you are always collecting things and selling them off to merchants. I don't have any kind of encumbrance (hate encumbrance), and you can have up to 200 of anything. But buying 200 hp or sp increases (potions and mana shrooms in my game) is going to hurt that pocketbook, especially when Regeneration 3 or something else sounds like a pretty awesome spell to buy. I have a fair amount of strategy in the battles, monsters could also cast regeneration 1-5 on themselves, but then your characters can cast wipe clean, which destroys all enchantments on the monster, good or bad. Monsters could cost an sp poison on your characters, sucking up valuable sp points, but you can use a remedy or cast the spell remedy to destroy that spell's effects, but that would take up a turn while you could be dealing damage. Healing spells are deliberately set low in healing hps, and also cost a lot in the game so you can't afford them, so potions are a viable option, but those cost money, and most only heal one character a time. It's actually better to use something like a high potion that heals 4100 hps in battle than a spell that heals 1600ish for all, and save the spells for outside of battle, so you can cast them multiple times and heal up to full, and then use mana shrooms to get your sps back up. There are accessories that block against negative states, but there are also spells called psionics that no person can block against, but the effects can be neutralized like any other negative status effect, if you are able to. I too plan to implement a crafting system that you can make a variety of potions and even special potions that you can't find or buy. My game is set underground, and the characters don't know why they woke up there, so their main quest is trying to get home, but to do that they need to get/buy everything they possibly can so they can make it to the last part of the game. I do have a job place where you can get jobs, kill x amount of monster, kill a boss, find this or that, etc, that gives extra money or xp or both. I like the sound of your game a lot though, I'd like to hear more about it.