[Rant] This game's practically dead in terms of actual content.

2. Damage and drop rate bonuses/penalties. Increase your damage to monsters below your level, but reduce drop rates accordingly. Reduce your damage on monster highers level than you, but increase drop rates accordingly. This gives meaning to character levels.

The first part should already be a thing, and part of the second part should already be a thing. One of the changes that came with Shade is that you do more or less damage depending on your level compared to the monster's level, and your drop rate has decreased when killing higher level monsters (minus bosses) for a while now. It wasn't explicitly mentioned in the patch notes, but when Shade came out I distinctly remember a damage bonus for monsters lower than me.