I'm curious, will the merchant's pouch only automatically sell any item that you physically destroy? Or Will it automatically sell discarded items as well?

If the first, could there possibly be a way, similar to selling at a merchant. That you can click and destroy something like ctrl+shift+ left click?

Right now it sells all items you destroy. Filtered items aren't considered at all. Yeah, something like a CTRL click mechanism would be easy to support... though fast destroy would have to be off.

I only ask because 99% of my usage is going to be mid chain and that's pausing skills to clear out inventory for more room.