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Borkahd
If I saw a villager take the time to remove a magic item from a dead body and return it to a mage, I would boot them and try to kill them. That doesn't mean that you can just leave things in the corpse, OOC you know that they will return anyway due to game mechanics.
Bleh. Booting for that? Your char knows IC as well that the gods will return the items in the corpse to the deceased when it decays, so the end result is the same as if just handing something over. Not that I'm in favor of getting the magic stuff from the corpse with the intent of just returning them, but circumstances may rise when you'd do it.
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Borkahd
But, then again, CF is ultra-lite RP so...not many people even think twice about doing these things.
It seems to me that by your ultra "realistic" RP everyone in CF should be multikilling and fullsaccing all of their mortal enemies until they are gone for good. Doesn't sound like a very fun game to me. (And just as a sidenote, yes you're always free to loot anything you need from a corpse you made, so people shouldn't moan about losing an item or two, but fullsaccing/looting is you just being a spiteful arsehole).