What I would like to see in terms of loot and quests is a nice progression.
Take for example Skyrim, escaping prison you could get some magic robes, heavy armor etc. The heavy armor you would keep for a number of levels likely. Some other MMOs you do a quest really early.....and you keep that early level item sometimes to the end of the game.
Other times, quest rewards are out of whack, though ES tends to be more even handed, where you would deliver a package, no fighting or anything and get a bunch of gold, xp, and an item (sometimes even magical).
My point being, I would like to see item quality/quests rewards progressively get better. It starts at the lowest end and works it's way up and not normally providing something that for the next five levels is going to be the best thing you find.