As it happens, I've been implementing treasure (and monster) generation today (Yes, I'm back at work on Neohack, after a 2.5-year hiatus).
The question of generating treasure for monsters to drop on death didn't come up in that form; the question instead, as I understood it, is what the killed monsters were equipped with at the time of death.
When monsters are generated, intelligent ones can now be generated with weapons, armor, magic items, money, etc, depending on what they can use and how common I want each category of that stuff to be. So if the player manages to fireball a Pixie Lancer, he'll probably get a wand (and a burnt Pixie corpse, and a burnt hummingbird corpse, and a slightly damaged 'saddle, size tiny').
I think that's the right answer; fold treasure generation for monster drops in with monster generation, and let monsters use their treasure (*ON* the player) until they get killed or use it up. The plus side is it makes monsters less generic; Pixie lancers get one random wand each, and you probably need to worry more about the one with the Death wand than the one with the Dig wand. The minus side is it means you need to make wand-using monsters pretty rare unless you want the player to have a huge supply of wands by the midgame.
It's not implemented yet, but I won't be happy until I can allow at least the intelligent monsters to pick up and use things off the floor, replacing the stuff they're carrying if that improves their kit.