That wouldn't necessarily be a good thing. Not sure how far along you are, but I've definitely hit the loot limit several times. If I had a choice to pick up more masterworks or more rares, I'd definitely dodge the rares and pick up masterworks. On GM3 it only takes 4-5 freeplay world events before you're maxed out.
Point taken. What we do need anyway is a way to set the game to pick up only certain loot (ie. MW and/or LG) or immediately salvage those we do not want. It shouldn't limit us from pickup radius benefits though.