As of the New Beginnings patch, items will no longer drop from being knocked unconscious.
Knocked Unconscious -[S] Reviving on Spot now has a three minute cool-down,[/S] and being knocked unconscious no longer has a chance to drop unblessed items.
http://wiki.mabinogiworld.com/view/Knocked_Unconscious#Details
http://wiki.mabinogiworld.com/view/Patches#New_Beginnings
Is this true?!