1. Keep - They get to keep the item. This will help in the early game dungeons by giving needed gear to lower level players as they level up. This will also help level alt classes faster since they will be getting better gear as they do more dungeons (since other quest may already be completed and levequest are mostly used for crafting and gathering anyway). As it currently is, lower level classes usually don't get much gear in dungeons, and by the time they get an entire set, it's obsolete. It also helps end game get decent gear faster and avoid the early grind for i-lvl 60/70 gear.