Yeah, I managed to down Leoric on a solo Hell run last night. It wasn't exactly what I'd call difficult, it just took a lot of time; like, 4+ minutes. And, I finally got some level appropriate gear to start dropping. It seems to depend on what I'm killing, trash mobs drop lower level gear, packs of elites drop level appropriate, and where I'm killing it. If I'm out in the wilds, chances seem to be that I'm going to get low level trash, higher level drops if I'm in a dungeon. Of course, none of the level appropriate gear I'm getting is class appropriate, but that's just playing Diablo. I can't even count how many really awesome katars I picked up with my barb in D2.
I'm with Necronic on the difficulty issue. Yeah, from what I've heard Inferno is damn near impossible - but the game was released last week, I don't want to be able to beat it this soon. And you know the people who are whining about not being able to faceroll the content now are the ones who'll whine that the game wasn't hard enough once they beat it, if Blizz drops the difficulty.