In the PS Blog post, producer Richard Wood answers all of these hot burning questions. Loot is not instanced per player so whatever drops is fair game. As the game supports local co-op only, though, presumably you and your buddy won't be fighting too much over who gets what. You're also free to drop items at any time for your friend, or even throw them at him or her. This sharing extends beyond just loot, too. When a player revives another player, the player that is doing the reviving shares their life with the player getting revived. So, if player one has 50 HP and revives player two, both will have 25 HP.
Your goal in this ASCII meets Tron world is to make your way to the 26th floor of the dungeon and defeat the Guardian of the Dungeon. You'll be able to choose one of four different character classes - Range, Mage, Warrior, and Amazon - and earn new gear, skills, and other treasures along the way. If you want some company for your journey, then grab a friend and a couch to embark upon a quest together.
First of all, don't call it Brutatl. I did that for like five minutes before I realized how unfunny it was. Brut@l the actual game takes place in a procedurally generated world constructed from ASCII characters. Your goal is to reach the 26th floor, and you'll be playing with a Ranger, Mage, Warrior or Amazon to get there, each with their corresponding weapons and abilities, like you do.