Originally Posted by pnakotus
Perhaps some way to flag dropped equipment as 'for town'? A special stash for NPCs, maybe. It'd be really nice to drop all the vendor trash in there and let the NPCs arm up themselves.
I like this idea. A chest labeled "Town Armory" and probably stashed right next to the Warmaster. Of course, then there needs to be a pecking order for who gets gear out of the chest first (ideally quest NPCs first, merchants, then townies last). I'd leave the current system in place along with the armory though; sometimes there's a particular NPC you really don't want dying on you.
It'd be a good idea to add some quests that add more gear to the chest without you having to do so manually. For example, the Warmaster wants better gear for the town, asks you to negotiate with the Armorsmiths. You talk to them and find they may have varying demands in exchange for gearing up the town for free (find me x of n item, I despise <townsperson>, go pummel him for me, whatever), and when the quest is complete the chest automatically gets stocked with a bunch of new gear.