Or punishes those who don't play "well". It rewards and thus encourages a more loot focused style, which I'm not really interested in. I'd rather have players focused on beating the bad guys than on scavenging every last bit of loot.
Sure it depends on your playstyle both are viable IMO.
That definition of "well" also relies heavily on what the GM plants for them, so it's not all on the players: how much of the treasure is hidden and how well, how much happens to be things the players want to keep and use rather than sell, etc.
Well how much treasure could be stadarized and on some level is.How much happens to be things players want is basically random, unless the Dm chooses otherwise.
Also how much treasure is easily accessible and how much requires ingenuity/searching to get could also be standarised. Though you are correct to say that how well its hidden can't be.
Also think that even if I was commited 100% to the way of playing I am suggesting, I would still adjust treasure depending to my party/setting/story a bit.
Simirarly anyone who is comfortable with adjusting the treasure would take issue if his players constantly bought and used consumables and spells with expensive components.
Ofcourse you can prioritize which of the two playstyles you prefer.