Just a word on drop rates: While I understand your reasoning and math, that's not technically right. The chances of getting an item don't actually increase or decrease (unless patched) each time you kill something. Each time you begin a boss fight, the chance of getting said item is still .5% (or whatever) - random events have no memory. The game doesn't say, "Oh, you've done this 99 times without success? Well, this time I will drop your item because statistics says I have to!" Granted, you could always get it on your first try, but it could also take you well over the average as well. This could all change of course if, like someone said, the loot tables change to prevent endless boss runs.
Sorry for the semi-unrelated-to-your-post rant. =)
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Sorry for the semi-unrelated-to-your-post rant. =)