Ydars said:
Magical items should be so rare that they are items NO PC would EVER give away. I feel they should fulfil specific story and plot goals rather than simply being another way of taking a stat/power increase.
Game is balanced for players having around 5-10 magic items each at 10th level. Maybe not super items, but still items.
You can take it away and give them only 2 items per entire party - sure. If it fits you and your players, great. Just don't be surprised if they will die often then they should - but after all, it doesn't matter as long as magic items feel 'magical', does it ?
You can give few more items and never replace them. Will work nicely on low levels, your party will get owned later. There is a good chance they will never reach the levels to start worrying about it.
If you will follow the proposed balance, players WILL get useless items after some time, because of replacing existing ones with new and better things. In 2nd ed, system tried to solve it by hand waving and saying "Magic items as so rare, that even if you want to sell your sword+1, you can give it to your follower/cohort, so it 'stays in the family'". It is simply not true - when players go through few official modules and get a heap of useless magic items, they will try to sell them somehow - exchange for spells, other magic items, gold, rare components, whatever. Regardless of how 'magic' you want sword +1 to be, it WON'T be magic when everybody around is running with Holy Avengers.
Only difference is that when players were on low level, nobody was selling such swords +1, because entire world thought they are 'so magical'. Only at the point it is useless to the players, world suddenly starts to accept that low level magic items are normal (if expensive) commodity.
I agree that creating magic items in 3e was too mechanical and too easy. But you cannot pretend that magic items as so rare and supermagical if you have 50 of them equipped in the party and another 200 stacked in bag of holding. So either
a) accept that magic items are a commodity and adapt world to the fact that there is some limited trade/barter with them
b) limit number of magic items per person to max 1 (maybe 2nd one on epic level) and throw all original adventures and monster/player balance out of the window