It’s a wonderful tool to add fantasy and role play opportunities in the game.
The result should be to add fun and challenges not to turn into grotesque situation.
I think it is decided each time the most clever and charismatic player play something else than fighter.
When the most skilled player at a table play a fighter the fighter is on every talk, every action, plan and scene.
I would call that « staging » or « black boxing ».
The DM setup something and PC face the situation.
I would not even bother to steal the components for the plane shift spell.
Any system will remove the « special » about magic item, and make buying a common mundane task.
Make buying, exchanging, crafting items an adventure. With risk of failure or big rewards.
Otherwise magic items just become an extension of classes features.
Conclusion
All ranged based character will take the feat to ignore the penalties. The more the penalties will be severe, the more it will be a must pick.
Caster will pick one backup cantrip that use a save rather ranged attack.
So you won’t see the penalties in use, except for rare case.
Too many was 4ed.
Base bonus to hit +15
Then
Add +1 from one of your power
Then +2 from another power
Then +1 from ally A
Then +2 from ally B
Then -1 from enemy X
Then -2 from enemy Y
Finally you remember that your are bloodied giving you a +2
Then you ask if your target is also bloodied giving...