And you mean? That you shouldn't be able to make a pristine item with bad quality materials?

Only happens when you're switching it while holding the other item in your hands already. If you remove it from your hands and use an other item, it works correctly. But I guess that's what you meant ;-)

Don't think anyone in a post-apocalyptic world cares about the consequences of a few smokes here and there... on the other side, smoking a cigarette can give a temporary effect. The same could be achieved by drinking any kind of beverage that contains alcohol.

There's already an issue for this @ http://feedback.dayzgame.com/view.php?id=1592

Why not? By putting it into your hands and click a 'Look through' option, or put it under space bar, so you bring it to your eye.

This is still an issue, you can't 'use' any item that is on the ground. You can't put it in your hands either. Now there's also an error being shown when you try this. I attached a screenshot.

Confirmed. Does seem to happen randomly, doesn't matter if i'm playing on a high population or low population server. Happens inside buildings but also outside on the ground. When i'm on the first floor of a building, I can see it just below the ceiling on the ground floor. After some time(1-2 minutes) the item reappears above the ceiling/ground.

Confirmed, getting kinda paranoid because of this.