NPCs not welding items given to them.
 

NPCs would wear the armor they are given even if it was no drop.

NPCs would also USE weapons that weren't no drop tagged.

This is pretty classic, along with the Charmed pets dropping the items you hand them not tagged no drop.

I can not confirm for classic, as I did not start playing until April 2001, but I remember this from when I started playing: You could "nerf" a dual wielding mob (hand to hand) by giving him a 2-handed weapon prior to engaging (with the right faction, of course).

Yup.

And I really miss random NPCs like the Priest of Discord being decked out in bronze and such.