Slight correction: the BoH allows you to skip over (most of) the encumbrance mini-game. You still need to know what you've got in the bag.
Well...
Even the 1e 01-30 quality BoH will accommodate 250 pounds worth of gear of up to 30 cubic feet. While you couldn't put ridiculous stuff in that space it is enough to hold a heck of a lot of ordinary dungeoneering type equipment. Enough that only highly unusual situations would require you to keep track of it beyond "when I go to town I replenish whatever was used up." You could carry 100's of feet of rope, dozens of spikes, many bags, backpacks, belts, pairs of spare boots, 100's of torches, dozens of flasks of oil, several lanterns, and many other supplies of a diverse nature without exceeding that limit.
If you are blessed with even an average bag of holding, up that to 500 pounds and 70 cubic feet, which certainly seems like enough to carry many suits of armor, a small arsenal of weapons, and all the stuff mentioned above.
And of course if you happen to be lucky enough to have a Portable Hole! Heh, forget it, you're set. The hole is presumably 6' in diameter, by 10' deep, which means a bit over 300 cubic feet in size and there is no weight limit. My 1e Wizard actually figured out how to equip a fairly usable magical laboratory in his!
Of course, all of these items could well be quite rare. Still, they do kinda pretty much subvert the basic logistics game.
