Just tried it on a flash cart. I can pickup items, but they are not removed from the world since $FFF1 is > $5000.
Edit: I could implement a check for $FFF1, if requested.
Edit 2: I suppose you could say this code also prevents thieves.
When I get some time, I'll fix up the code and port it to 1.1 and EU (if it's not already working).