I wonder how much of this whole low-magic business can be finessed by simple flavor changes. For example, item slots. Remove a few: say, cloak, vest, and a ring slot. Replace with: training slot, spirit slot, and blood slot. Or just two, because "blood" might be hard to explain, and maybe we do want less powerful characters: training and spirit. These slots become inherent to the character, and can't be sundered or stolen, and the training slot may not even be "magical," and the spirit one could be debatable. Instead of just accumulating loot, the characters train with legendary teachers or are blessed by guardian spirits to gain the effects of these "items." Thus, you have a somewhat lower-magic feel, fewer Christmas trees walking around, and less adjusting to do.