HoboGod
First Post
You seem to be suggesting that the lower level characters receive the more powerful magic items (or the gold to buy them). Seems a tad unrealistic.
When a lower level character joins a group, he starts with less wealth than his higher level counterparts have already accumulated. The experience system in DND ensures that the lower level party member shall eventually catch up to the rest of the party. If everyone keeps splitting the treasure evenly, when that gap in experience is eliminated, there shall be a gap in wealth. If you don't want to award more treasure to the lower level character to bridge this gap, then that's fine. I'm not telling you to. Instead, I'd suggest that you give him starting gold as if he were the same level as the rest of the party and treat him as that level for determining loot.
The fundamental divide between the dm and the players is that the players decide what their characters do. IMHO it is absolutely not the dm's place to intervene when the pcs want to divide or sell treasure or the dead guy's gear.
Oh goodness, no. We are definitely not on the same page here. A 5th level character's wealth is between 9000 gp and 13000 gp, the average encounter at 5th level grants the party 1600 gp. The gold they've gathered represents ~6-9 encounters. To not intervene while still maintaining balance means I'm doing one of two things. Either I'm not giving them loot for a good long while and they become frustrated that their adventures aren't proving fruitful or I'm giving them reduced treasure and more difficult encounters, letting them be magic item juggernauts powerleveling through my game for an even longer while. I don't like either option, quite frankly.
None of the stuff I bolded in your quote above even has anything to do with dividing treasure, so I'm not sure what its relevance is.
It's to illustrate a parallel between "the party decides" situations and greedy players. They're one in the same, quite honestly.