Seems dumping stuff all over the world increases save files which can and does lead to lag certainly on the PS3 version. So rather than dropping unwanted weapons/armour etc, would a trash option work? So instead of the game having to remember where you left stuff, it in effect deletes the item from the world

Obviously quest items cant be trashed

Or a "junk" section similar to some other popular RPGs. You can move the item you don't want there and it won't clutter your inventory. Then, when you get to a merchant, you can just "sell all junk."

I'd also like it if non-usable quest items went into a "quest" item section. I don't want to carry an Elder Scroll, Dwemer lexicon and three unusual gems everywhere for the rest of the game after they've become useless. I'm actually hoping a "remove quest item tag" mod comes out soon so I can just dump them period.

I cut my RPG teeth on Morrowind. I know not to lose [censored].

Drop it in a respawnable container like one of the fruit/veg barrels, the game should delete the items when the barrel spawns new content.