Yeah but it could work like this, but then for each item that is picked up do a check if it is in range of the block picking up the item. Also, I personally rather buy a bigger pc than have such unrealistic loot pickup - I know that there will be a performance issue/scaling issue once I start a mod that has loot anyways. (Unless the mod has other was dealing with loot). Loot is non scalable in anyway and this mod more or less just seems to make loot a "non issue".
If it had a penalty like "energy is consumed based on distance from chest loot is picked up" or similar it would be much more fun/realistic.