| Nate, see some of my earlier posts about using treasure parcels equivalently. Basically, there are a few ways to resolve your concerns while still using parcels (although you can also just as easily use TMT, please don't take this as criticism, merely elaborating on how one can use parcels).
So if you dislike having encounters with no treasure, 10 parcels = 10 encounters in a level. If you're concerned about players catching on that there is "no more treasure on this floor", then I would say simply don't do that. This goes back to my equivalence of parcels idea. You can do it for gold too, but let's stick to magic items for simplicity. At level 1 you hand out magic items levels 2-5, and at level 2 you hand out magic items levels 3-6. This means that magic items of level 3, 4, or 5 could potentially show up in either parcel.
If the players increase to level 2 but remain on floor 1 and fight challenges averaged around a level 1 party, start handing out the level 2 parcels that could have been level 1 parcels. you have at least 3 magic items, and some of the gold values should be comperable as well besides the lowest gold from 1 and the highest gold from 2 (possibly more, but you get the idea.). When you finally run out of things from level 2 parcels, if you absolutely must, move on to level 3, that should be a level 4 and 5 item, plus any gold.
When you finally run out of options, then you should DEFINITELY stop giving out treasure. It is likely a good idea to do it sooner than that. | 
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