A few weeks ago I released the first version of the Diablo 2 Randomizer. As with randomizers for other games the idea is to take some elements from the game and shuffle them around or assign completely new values. An example might be unique items with attributes from other unique items. Or shuffled set item stats. Or new colors for enemies.
Since no problems (bugs, crashes) were found I wanted to show the project to some more people.
I would say it can get crazy but only within the limits of the original game - what that means is that you can get some overpowered items, but only because other items already had the same attributes etc..
There is not much balancing going on right now. So answering your question: Currently I would say both. However in future versions I would like to have some restraints to keep everything more balanced.