I think the 5% drop bonus you get for the game being 10-20x slower is hardly worth it and will take far too long to "pay off" comparatively to people who just jump right into pvm with the faster rate.
Additionally, with the bonus being so low, only drops that are 1/20 and rarer will be affected by it, as 5% of lower numbers will not even lower the rate by 1 depending on how they round it.
I think the bonus should be like 10% or something, that way more common items will be affected by it, and it will actually feel noticeably more rewarding when you do start getting drops, and not feel like we're just completely behind the people who start off the server playing the easy rates. Or you can raise the xp rate of realism mode to 10x so that it's not as much of a disadvantage, making the 5% more worthwhile since you're not as far behind.
Even if you don't decide to buff the mode's drop percentage you should round DOWN for the realism mode bonus so that 1/7 drops become 1/6 drops. Otherwise that 5% won't be enough to make a difference for common drops.