Some people like Monty Haul dungeon crawls, some don't. Sounds like D1E was the former -- although I haven't played it -- and they tried a different tack with D2E. Personally I think most games put too much emphasis on gear & not enough on skills. If you take away Conan's +9 Sword of Compensation , does he go from hero to zero?
To be honest however, finding potions (majority of Search cards) -- and buying items -- does seem backwards to me. Looting trash (level 1) gear -- shield, armor, etc. -- during the run would make more sense to me than finding an undamaged potion bottle … and then drinking from the **** thing without having it identified by the town alchemist?! I can kind of understand why they did it from a design / playability standpoint, but I think I'd have made different decisions.
Relics are the rare exception of gear acquired during Encounters, aside from the occasional chest, which does seem right to me.