Loot re-spawn might be a good thing, but it has a tendency to make servers laggy, I would rather keep to the idea of having lootable zombies. Though that has its own issues as well, but I think it all comes down to server hopping, if loot re-spawn and lootable zombies are something that people are hoping will curb the appeal of server hopping, then maybe just addressing said issue would be a better approach. Some kind of penalty for jumping on too many servers within a given time span maybe.