Overshooting the mark, in my opinion. You've got really interesting stuff dropping right from the off, but I think they should be slimming it down and saving the good stuff until at least the halfway mark of the 'normal' playthrough. But the loot is exciting in TL2, you're always looking forward to looting chests and downing bosses.
While you may loot things that are above your level, or a little bit powerfull, you may not always have the stats required to equip them, so it also gives some more incentive to go on, level some more and be able to equip the item.
That's something that is completely absent in D3 and it makes leveling so bland and boring.