Bashiok shared a bit of info about the visuals and mechanics behind looting items. It is a change from the norm in Diablo II.  You will still need to press down the Alt key to see all loot within the screen, but loot title will be displayed the moment it drops and fade after five seconds. If find this quiet helpful. Sometimes in Diablo II, something would drop, and you wouldn’t notice. Specially when using AOE spells that kill mobs far away, while you are still killing mobs closer to you.  It is easy to miss something that drops unless you hit the alt key.

Visually alerting you of items that drop anywhere onscreen, is a very welcome feature.

The way it works now is that when an item drops the name shows for about 5 seconds and then they fade out and disappear. Pressing Alt shows all dropped item names for again about 5 seconds and then the names fade out and disappear.

I actually didn’t like it at first, I liked the on/off state of pressing or not pressing Alt, but with the names showing immediately after drop and having a sort of “grace period” after just tapping Alt, it’s really grown on me and is a lot more intuitive. It’s a lot easier to see what just dropped quickly and decide if you care, and it isn’t necessary to constantly hold down Alt while scavenging after a large fight.

I still want to see -nopickup return but I haven’t really asked anyone what the possibility of that is. I don’t think it would work well with the current system, so options may have to be a possibility.

—source: Battle.net

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Thanks, Lyquid