Pathfinder Online is released, because you'll have more to worry about than just the upper limit on items in your inventory. The latest development blog on the official site explains the Encumbrance system, another limit on how many items you can carry due to a combination of size and weight. Hauling around a lot of large and awkward items is going to mean less ability to carry everything else, while lots of little things like herbs will be more easily carried up to the inventory limit.
The blog also has more details on what happens to your inventory when you die -- some of your items are instantly destroyed, and only those items specifically bound to you will be exempt from looting. The game is also implementing an item decay system, ensuring that nothing you have is all that permanent, although with the encumbrance system in place that might be something of a blessing in disguise at times.