People, item deterioration is in MMORPGs for a very good reason. Its not there just to annoy you.
Your idea that items should hang around indefinitely or for months on the ground is unworkable. Conisder a popular hunting area, where lots of critters are killed by players on a regular basis. Each of these critter deaths result in items dropped.
A lot of times, critters will drop junk that no one wants, so it lies on the ground. If the game lets this junk sit there for months, imagine the buildup of junk lying around. Eventually you would have hundreds of newby swords (for instance) sitting on the ground.
And whenever a player walks into the landblock, data for each and every one of those items lying on the ground has to be transmitted to their client from the server. I can think of no better way to induce massive lag than that. Not just for the player entering the overfull landblock, but for everyone in game, since the server will be spending an overabundance of time transmitting item data rather than handling everyone else\'s packets for movement, combat, crafting, whatever.
(As an example of this from another game, in AC torches were given special treatment. Because they provide light, they didn\'t decay so fast when put on the ground (which is to say they stuck around for about an hour rather than decay within ten minutes as was usual for most items). Because of this, some players collected torches and spelled out words with them (for their guild or whatever message they thought was clever). After a bit, Turbine made this practice against the ToS, because it was causing undo server lag. And that\'s an item that sat around for an hour rather than months, and just a dozen of them rather than hundreds. What you are talking about is orders of magnitude worse! In the *very* popular hunting spots in AC, even with the 10 minute decay, junk buildup was still pretty significant. Turbine tried to solve this by insta-decaying critter bodies immediately after they were looted, which I think helped).
Not to mention the amount of drive space taken up the data entries in the database from all those useless items lying around. With your method, eventually you would have thousands or millions of such entries in the database taking up space for no good reason.
You should always consider the effect on the server when you ask for new or different features. There are limits the team has to work with, and bandwidth is one of them (a big one, in fact).
HTH,
Ron