I sidestep the issue yet again!
In addition to having treasure hoards and item creation feats, I also let characters (PCs and NPCs) "imbue" items with the power of their spirit. Basically you pay an XP cost, and one of your items of gear takes on exceptional qualities. This has various nice side-effects, namely cutting down on the looting mentality, making treasure planning less important, and helping to address the whole "magic items aren't _really_ part of a character" thing.
Rules here: http://www.zipworld.com.au/~hong/dnd/imbued_magic.htm

In addition to having treasure hoards and item creation feats, I also let characters (PCs and NPCs) "imbue" items with the power of their spirit. Basically you pay an XP cost, and one of your items of gear takes on exceptional qualities. This has various nice side-effects, namely cutting down on the looting mentality, making treasure planning less important, and helping to address the whole "magic items aren't _really_ part of a character" thing.
Rules here: http://www.zipworld.com.au/~hong/dnd/imbued_magic.htm