Detect Magic allows the caster to determine the magic schools involved in an item, and how strong the item is. My players don't have troubles using this and a few tries to get an idea of what an item does, or at least whether they should sell it or pay someone to Analyze Dweomer. For example, if a weapon gives off a faint Alteration aura, you know that it's a plain +1. If it's Moderate, it could be a +2 or a +3, but if Identify says only +1, you know that it has something more. Which, if Detect said Evocation, could be something like flaming or flaming burst - test it on a tree and see what happens. If you get a flame (or lightning, or whatever), you've got your item identified, otherwise you know it's something weird and deserving of an Analyze.
The standard spells allow you to know enough about an item to gauge its value and estimate its properties. They also leave enough mystery to keep the whole thing interesting at least until Analyze is cast. IMO, having Identify tell everything makes the whole identification concept a bit like Diablo or Baldur's Gate, where identification is so cheap, easy and readily available that they could just as well remove it and make every item immediately known.