I don't want to derail the thread, but on the topic of magical items...
[sblock]I've found magical items were a real stumbling block for one of my players too.
I've been contemplating how to change magical items, because I don't like how the system treats them. I don't like how many you're expected to have, and I strongly dislike +X items.
My general feeling about magical items is that you get 1-3 that have a suite of linked abilities, and those stay with you for quite some time of your career. One thing I liked from a story perspective was 3e's Weapons of Legacy, that weapons gained powers and had mechanical representations of their history.
So here is something I had in mind. Bare in mind it's rather quick and dirty:
Sword of the Icy Field (Level 6)
Property: Gain resist 5 cold.
Proeprty: Gain Ice Walk.
Power (At-Will): As a move action, freeze all non-magical, non-animated liquid in a close burst 2. Anyone in the liquid are pushed back 2 squares. The frozen liquid can be walked on, but is treated as challenging terrain (wielder of Sword is immune).
Power (Encounter): Attack: Level+2 vs. Reflex; Anyone in the liquid when the At-Will power is used are immobilized (save ends) instead.
Power (Daily): Standard action. Create an ice wall 5 with 8 until end of your next turn. Wall has 40 HP, vulnerability fire 5. Wielder is treated as having Phasing with regards to the created wall. Sustain minor: wall persists.
Shield of the Abating Flame (Level 11)
Property: Resist fire 10.
Property: All enemies that use the Fire keyword are treated as marked by the Shield's wielder.
Power (At-Will): Minor action. The wielder of the shield may transfer any benefit of this shield's abilities to any non-combatant ally he is carrying/holding hands with.
Power (Encounter): Immediate reaction, when missed by a melee attack. Target takes 1d8+con fire damage.
Power (Daily): Immediate reaction, when hit by an attack that deals fire damage. Gain hit points equal to half the damage dealt by the attack, before applying the shield's fire resistance.
Items now become mini-artifacts. The idea is to take an item and give it some serious thematic powers/properties. Although the powers are fairly situational (the shield vs. fire, the sword freezing liquids), it fits the theme.
One thought I had towards this is that you have a limited number of items, but you also have a list of thematic powers. The list would be used to:
1) Upgrade them, by doing things story related that would awaken those powers (ala Weapons of Legacy), or the DM chooses from the list and adds it on there as a reward for level up.
2) Assemble your own items. This might even let you have a linked set, like the Sword of the Icy Plain, the Armor of the Glacial Shell, and the Frozen Heart Amulet.
The real trick is balancing this, not only in terms of what the items do, but also balancing how to make it not an uber broken thing in and of itself, especially as they grow in power or PCs get more than 1.[/sblock]