Size based eq would be an interesting factor to have to consider; however, it
would result in a tuning nightmare as only certain races would end up being
able to use various pieces of eq. Not to mention, it would take a lot of work
to go through areas and update all the monsters/eq to reflect this new data.
As per your particular idea, it doesn't allow for multiple people using the
same chest very effectively. Also, why should you lose/gain chest space just
because you reinc? [Note: this paragraph assumes that eq is assumed to be
sized for the "wearer"].
So, my interpretation of eq on this game is that eq is somehow enchanted so
that it shrinks or stretches based on the wearer. And that as you put it in a
chest, it shrinks to some standardized size.
In short, a nice idea, but one that this game simply doesn't support. Not to
say that some coders won't pick up on it and make eq that only people > siz 80
or < siz 40 could use (I have in fact had this idea before and intend to use
it at some point

). Just that this would require a fundamental change in
the game that I doubt anyway is willing to tackle...
My 2 cents,
Melemkor (whose 2 cents don't really matter since he's not an arch