Good, Yoshi started to wisen up on not handing stuff out COMPLETELY. As for what happens, it becomes dungeon drops - It has to keep dungeons relevant somehow. Or maybe he'll do it back how we did it in 1.23:

You farmed up the items from monsters or mining/botany...they USED to exist from outside of vendors. I70 also includes the old Giantsgall/tail or whatever weapons that used to drop from Skirmish.