The game where players don't get instantly swept away in shallow water (so the currents cant be that bad, eh?),
but items do get instantly swept away!
Ok, I get that items would instantly disappear in Providence's disgusting rubble-filled waters because pilgrims sift their rubble around there. But:
The shallow water seems to not even be foot-deep, let alone knee deep or waist deep.
However, I think that in knee-deep or even waist-deep shallow water, you wouldn't instantly lose everything!

Perhaps if the item is, using the amazing new weight/inventory system we now have (thank you!) 1kg, maybe 2kgs or greater, we could say they are massive enough to find in shallow water.
That way, when people die in water, only the stuff that falls into the deep area will be lost!
As well: A more complex and time-consuming way to think about it would be to give the items a de-spawn time corresponding to their weight. So as the item is more massive, it takes longer to despawn before it gets swept away or ruined in water, perhaps.
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More detailed:
Art-wise, you could do nothing at all or maybe you would just turn the item a blue/white-hue.
Programming wise, seems like a simple if-then statement to implement, although I have no clue how Salem is coded!:
if (tileZone == water)
{
if itemWeight > 1.5 //kg, your decision on the mass
(keep the item)
else
(item disappears into the magic void of shallow water)
}
}
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Conclusion:
As for the effect on players, players could still deny items or get away by swimming into deep water, however dropping items or becoming unconscious in shallow water won't have as big of an affect on salty players

Or, perhaps dropping items in water is too 'soft-core' for the devs.
Perhaps dropping the items in the water ruins all objects it touches to the point where they are not usable.
But, this is just a suggestion and small argument to the devs ^_^. Always nice to re-consider the taken-for-granted mechanics of the game as it evolves.
Perhaps the idea gets throw out altogether because it's not possible with the code! Not sure, just making a suggestion to see if the players agree or not!
