I don't mind encumberance that much. I think it's necessary if you're making any attempt at balancing the economy. Without it the player returns back to town with every bit of loot from the dungeon to sell, and the economy doesn't matter anymore.
However, any game that has an encumberance mechanic absolutely has to have a weight/value sort and display. I don't know why this is so hard for them to implement. Bethesda games never do, and I'm playing Tainted Grail (I've heard lots of good things, and it's alright so far) and it doesn't. With any amount of playtesting they'd get overencumbered, try to figure out what to drop and instantly realize they want to drop the highest weight/value items, and there's no way to view this! How do you not add it?