Desh-Rae-Halra The system is open enough for you to mould to your tables needs, but as written you are correct each individual object counts as 1.



because ammunition such as arrows has a Usage die its no longer necessary to count individual arrows, and therefore they can neatly take up '1 slot' of encumbrance.



Reflect on the fact that this system is not just a simulation of weight, but also the difficulty of SAFELY AND SECURELY carrying a bunch of items. 100 plastic spoons might not weigh a lot, but carrying them all in your pockets and theres a chance you might break or lose a few.



You say your example is imbalanced, like the guy who is carrying a bunch of great mauls has an advantage somehow? Seems like the guy with a backpack full of adventuring gear has the advantage, when you figure all the neat things he can do with that stuff.



Crucially however don't forget that this is a game system that tries to get rid of as many measurements and numbers as possible - converting them into broad terms that are super quick to use but still just as effective (and fun) at the table.