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I got my first legendary from a nameless chest in Act 3 NM yesterday. Someone else on GAF got a legendary from a barrel or something. It's pretty ridiculous.
Right, and last night I killed Nightmare Diablo with a friend and got a blue. A single blue. I think its level was in the high 40's.
I have never once, once gotten a loot drop that was equal to are higher than my current level. Hence, back to the AH for gear.
Are loot drops tied to your character, or is it tied to the specific difficulty and Act? Is my character just too over-leveled for the content I'm running? Sure didn't feel that way on Hell though.
It's sad really. Because the gameplay in this game is just so fucking stellar.