Raids should be able to drop loot on par with Flawless loot. Maybe for raid challenge completions only or something, it really doesn't matter. Raid loot should be good loot.
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I like the idea. Maybe with the reintroduction of hard mode raids similar to those in D1 we could see some legitimate upgrades to raid weapons. The prestige modes of year 1 were a failure because there was no incentive. I hope that we could see some changes to raids with the return of hard-mode specific mechanics, higher light requirements for hard mode, and upgrades to the hard-mode loot.