Any loot that doesn't get picked up, goes to the postmaster in the Tower (might not be the postmaster, but one of the droids in the Tower). While that is cool, so we don't lose out, I agree that the loot is hard to see and that it would be a little annoying running back to the tower for loot. There are times where I need the loot ASAP. I do really like the idea of never losing your loot though! Good things Bungie, good things....
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...it goes back to the tower?! I ALWAYS spent time making sure I didn't miss anything... All that time wasted for nothing. =.=