From what the reviews say, the loot system has been completely redone. In IGN's review, the reviewer got his first legendary item while he was level 12. LEVEL 12! He accomplished in his first couple of hours what had taken me nearly 200! In their video review, the reviewer stated that his first complete run of the game yielded 10 legendary items. I purchased a copy of Diablo 3 for Xbox 360 the very instant I read that.
In truth, I really like Diablo 3 as a game. It was just the frustrating, broken, and entirely fruitless item hunt that drove me away. Since that's been fixed, I actually can't wait to get my hands on this game and play it again. I'm a completely shameless loot whore, and it's rare that I find a game that can scratch that itch. It's just sad that I had to wait for the console version before I got to play Diablo 3 the way it (in my opinion) is supposed to be played.
It's not so bad, though. I prefer consoles anyway. I am absolutely awful with a mouse and keyboard. Could never get used to them. Put me behind a mouse and keyboard in a first-person shooter and watch me stumble around like a drunken buffoon while desperately trying to hit something. I guess my brain just wasn't wired to comprehend that control scheme.