I personally don't find classic D&D conducive to what you describe here, because I learned it from the rulebooks, and in those books - especially in Gygax's DMG - there are too many admonitions not to make life easy for the players. So I would never walk away from those books thinking that the minotaur thing you describe is a possibility.one of the fascinating things about much earlier editions of D&D that I really enjoyed when I went back to them (particularly when I looked at the white box), is how short and open the spell descriptions are. By 3E the descriptions were very specific about what the spell could do. So the GM had less power to interpret in a lot of ways.
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For example a player kills a minotaur and decides to forge an axe made from its bone and blood. Not using a spell he calls upon some crazy god to imbue the axe with the spirit of his fallen foe. I like the GM being able to rule on that. Ruling here isn't a simple yes or no. And it isn't mother may I. The GM should consider the attempt honestly. I certainly would at least give that a chance of working, and if it succeeded I'd probably allow it to be a pretty bad ass magical weapon (not just some +2 item).
For me, the version of D&D that most opens up the sort of play you describe is 4e, because it's structure - for resolution and for character advancement - is so transparent. So we did have things like what you describe happening: the players could make confident action declarations, and as a GM I could make confident declarations. I know there is a whole swathe of D&D players dedicated to the proposition that 4e D&D could not support open-ended play, but because I only knew it from its rulebooks, which are full of descriptions of and encouragement towards open-ended play, my experience was exactly the opposite. (We never had a minotaur bone axe, but we did have a Fire Horn imbued with its power from the chaotic energy of a defeated firedrake.)
In the thread I started about a fighter praying to heal their dying ally, I've been a bit surprised by how many posters think that is simply not on the table. In 4e that sort of thing was easy to adjudicate (and other than just by saying it can't be done).
One thing that was always clear to me, in classic D&D, was that a fireball could set things on fire, and 4e seemed to me to be equally clear (its fireball spell has the fire keyword, which is defined (in part) by reference to ignition; and the DMG has a discussion of fire effects setting flammable things on fire). It puzzled me that many D&D players seemed to think that using a fireball to set things on fire was against the rules of 4e D&D; and I've seen it suggested by 5e players that it would be against the rules of that system for a GM to describe the victim of a fireball spell as having (say) scorched clothing, because the spell only refers to setting unattended objects alight.