P7 gives the most loot, provided you can kill fast at that setting. I build characters that can, and a java is one of the best for this. There are exceptions of course, my pitzerker does p1, trav barb does p3, etc.
I haven't played on the realms in years, but I would always find bot games if I wanted to do my thing with 2/4/6 other players in the game to get p3/5/7, which is where the loot increases. Is that not a thing anymore? Last time I played on the realms d2r didn't even exist, so I have no idea what online is like currently.
This is still true! All the drop mechanics and tables are the same as back in the day AFAIK the primary difference is Terror Zones which can turn every area into a loot pinata leveling zone.
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DasNarf
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