I understand that for game balance reasons you cannot loot everything carried by a dead alien or human. But this seems very unreasonable.
For example I might fight several New Jericho soldiers holding equipment that I will manage to produce months later and I cannot loot them from their corpses? And I am not talking about armor, which you need time to remove and might also be damaged, I am talking about undamaged sniper riffles and pistols.
So how is that explained in this game?
In some games your equipment is far better than the looted one. But this solution is not suitable here, since almost any technology found on other factions is better than yours.
In other games you cannot loot the weapons because they are incompatible with your soldiers or they are automatically destroyed upon death. This approach is completely unsuitable for this setting.
The only solution I might think of is allowing to loot weapons but with very limited ammunition. In that way the weapon is essentially useless without the tech to create bullets for it. You would still be able to use it with looted bullets.
On the other hand this solution would create an economy problem since you would need to produce less weapons. A solution here is to add phoenix point upgrades to existing weapons. In this way the weapon crafting cost would be transferred to upgrading looted weapons.