So your advice to him is that he should stop playing the way he does and start playing the way you do
Yes. Is that odd, somehow? It is my opinion (and, judging by responses from others, the opinion of many who have posted in this thread) that the problem he is experiencing is a
direct result of his decision not to provide ways for his PCs to spend their money. My advice was to provide ways for his PCs to spend their money - ways like allowing PCs to buy magic items in town, an option that the 4e game assumes the PCs will have.
My advice is for him to play the way I do (and, I would point out, the way
most 4e games are probably played, at least in terms of how PCs buy gear), not because it's how I play, but because it's how the system is set up. If he's using the wealth formula assumed in the game, he needs to understand that said formula is set up with the assumption that PCs will be able to buy magic items with the gold they receive.
and your advice to jbear is to stop treating residuum like treasure because ... I'm not sure why ... it offends your sensibilities?
No, that wasn't my advice. jbear claimed that gold could be freely exchanged for residuum. This carries the implication that buying residuum with gold is part of the game's rules. I was pointing out that this is
not, in fact, part of the game's rules, and then explained
why it's not a part of the game's rules. He may have his reasons for house-ruling that residuum can be purchased, and that's fine if his game is running smoothly.
Contrast this with my advice to huank, who explained that his game was
not running smoothly, and then asked for advice.
I actually think the "residuum as currency" idea has legs and encourages ritual use.
I think it might, too. It's worth exploring; in fact, the idea of selling residuum for 2gp per 1gp worth is attractive - you pay a premium, but you gain the fungibility that residuum provides over specific reagents.
I also think that some people (myself included) don't like characters being able to load up on magic items whenever they feel like it.
And that's fine. Of course, the wealth distribution in 4e doesn't allow players to load up on magic items anyway, since they receive relatively little gold. But if you are using the treasure parcel system, you ought to allow the PCs to purchase magic items. If you are hellbent on not allowing this, you need to use a different treasure system, or you need to accept that your PCs will have lots of gold and no way to spend it. Your call.
The OP is asking for ideas, not criticism.
And I gave him an idea: allow PCs to buy magic items in town. This is, inarguably, an idea. It is also criticism, of a sort, but that's how it goes.
I think that you just don't
like me throwing that idea around, because you disagree with its ramifications.