Yeah, I'm using that mod but it doesn't alter the inventories of merchants.. it could have been really great if it did tough..
All that time farming them one by one is an exhausting chore (and most of the time not beneficial at all IMO).. not only white items should go, but their inventory capacity should also be increased by 3X amount of their original numbers if you ask me..
But I'm not sure omitting yellows completely would be a great idea.. some of the prefixes and suffixes they have can sometimes be more beneficial than the ones on green items.. particularly in the earlier levels..