Of course it is not my fault that the player lost their item. It is my fault to have that possibility and not design for it. If my design is "tough. you should have kept better track of it" that is still a design. Personally, I don't particularly care for that "feature" of Tibia, and if there is a way to design it differently, I am for that.
That's true, but then the item no longer becomes unique- it loses it's sense of worth, what stops a player from just giving this item away? Only to pick it up again later, this makes it meaningless for others to do the quest as they can just obtain one from their friend- or is the system keeping track of the item & only generating a new one if they actually lose it due to a floor clean?
It seems like you're actually trying to fight a fundamental part of tibia, rather than a simple "feature" you disagree with.
Obviously the choice of how you handle it is your own of course, I think it's an odd feature of Tibia to disagree with though- You could go down the World of Warcraft route & have these items "Bind" to the character, similar to how the "Store Bag" works in real tibia, that way they can't drag it out of their Depo/Backpack
but that doesn't really work with an item such as the Fanfare as it's purpose is a decorative item, which your system defeats the point of in a sense due to the house system, you can't possibly keep track of whether said person lost this item- if you can easily replace it you risk flooding the game with it & then it loses the reason why it's unique in the first place.
Edit: Actually having it bind to the character solves the issue entirely, you'd have it work exactly how decorative items from the store page work, you can only "Unpack it" inside a house, that way it isn't possible for the "player" to actually lose the item in the first place.
This also means on death they do not lose the item, as you don't drop bound items & it also means they'll always have it with them or in their Depo.
I see no reason why you couldn't do this with any item you didn't want people to "lose". Obviously it knocks out the value still as it would no longer become tradable but I get the idea that's what you're going for, because I don't think you can have the system you want but also allow it to be tradable in anyway.