I stockpile loot because I can never know in advance what a custom quest/event may require.
Another reason why I don't see selling loot as a solution is because the longer someone plays, the more space their equipments will take. Once all that space is taken up by those gears, then we won't be able to use our storage as a transferring tool to pass our loot to our merchants. I just like the idea of knowing that if today I decide to randomly hit up ant hell, the misc loot I will get from there will not increase my current item count at all.
At the end of the day I guess 1000 is enough though, since it is true that a lot of the stuff we keep will rarely ever be used, so we may as well put them in the storage of a separate account.
