It really was obnoxious having a dozen single items drop instead of a stack of 12 and having to click a dozen times to pick them all up. It was especially noticeable last season during Realmwalker when you’d spend so long picking up items from the goblins that the event would move on without you, and you’d have to catch up. It also felt bad during Helltides when you were racing to open chests before time expired and it would make the difference in how many chests you were able to loot in time.
Besides the looting time, when your consumable inventory was full it would make it hard to pick up the other loot, and it would cause your stash tab of missed items to fill up basically immediately.
I was hoping but not actually expecting this to be fixed, so this was a nice surprise.