Yes, but also for the reason that B will be easier to kill at that depth than A will. You're much more likely to have the level and launcher to kill Wormtongue at 950' than you will at 400', whereas your ability to kill Gorbag then won't be so great. This is assuming you dive. I don't even stop holding down the shift key until I'm around 1200'

I get a lot more enjoyment out of killing Wormtongue at 400' than at 900'. The 400' fight is an actual challenge; the 900' fight is a curbstomp. Sure, only engaging in curbstomps is safer for your character, but it's not nearly as much fun.

I don't see what this has to do with nerfing drops, though.

Me either. Not that it matters, but I don't think this is a good game mechanic. If there are two uniques generated, and the first is more difficult to kill than the second, then it should be the first that is more likely to give me a better drop than the second. Bigger challenges should bring greater rewards.

IMO, just don't scale the drops. Have them drop the same crappy item at DL99 as they would at DL10. Since killing a unique early will provide an XP bump and is more likely provide an item that an early character may find useful, it would be worthwhile to kill them the first time, rather than wait.

Really, you could apply this (ordinary drops) to anything that is found more than 2x deeper than it's native depth. Orc pits, troll pits, I'm looking at you.

drops used to be based on an average between the monsters native depth and the current depth. It was changed to only be based on current depth, as a method of getting rid of TMJ (i think)

This does create the unfortunate game mechanic of diving to dlevel 98 and taking out troll pits only to get loot.