I rarely hand out magic items. Sometimes, I'll have a character wearing it.
More often, I'll hand out items that can be used in the construction of magic items. That's also how I'll be doing 4e. A gem imbued with elemental fire, suitable for placing in the head of a hammer/axe or the hilt of a sword, etc.
I'll also be handing out raw resisidium, which, as I've posted elsewhere, is the major economic unit of my campaign. Coinage is weighted against residium, and residium is harvested from several ancient apartatus maintained by (now very wealthy) guilds.
Like, WTF is Irontooth not wearing his items?
More often, I'll hand out items that can be used in the construction of magic items. That's also how I'll be doing 4e. A gem imbued with elemental fire, suitable for placing in the head of a hammer/axe or the hilt of a sword, etc.
I'll also be handing out raw resisidium, which, as I've posted elsewhere, is the major economic unit of my campaign. Coinage is weighted against residium, and residium is harvested from several ancient apartatus maintained by (now very wealthy) guilds.