Green_Hilltop: But there's really not a reason to drop the items, is there? At least I've never encountered encumberance even when playing as a MU.
This is sort of a fair point, at least for the VGA version.
Unlike later games, you don't move at a snail's pace when over-encumbered, but you DO lose stamina faster, too.
However, it might also increase strength faster?
That being said, there is a reason to drop items in both the EGA and VGA versions - stamina. The less encumbered you are, the less quickly your stamina drops through actions. This means that, for example, if you're fighting the weapon master, you pretty much want to drop everything you can to the ground (including armor!) before dueling him.
Of course, you have to remember to pick it up before leaving the screen. Thankfully, dueling the weapon master doesn't change screens, so it's fine.