I've always thought that the magic level generally shown in modules, etc. was appropriate to low. Especially in the new system... My mage is 7th level (5 mage, 2 cleric) and has made a half dozen magic items and another half dozen scrolls or so. I don't expect that ratio to DROP, by any means. When we have a day of downtime, I often use it making a magic item for myself or for the party. Depending on my cash reserves, it's either minor or medium at this point (wand of forcewave, moon mote, disk of silent portal, etc), but my next feat is going to be Craft arms and armor. The XP cost is enough I'm careful about what I make, but not enough to make items that the rest of the party can use.
Of course, ever since I played an Earthdawn wizard, I've always found that the most effective way for a mage to deal damage is make everyone else more effective. (example: Don't mess with the 9th level, hasted, bull strengthed half-orc monk. Second example: Forcewave, does a bull rush. Think attacks of opportunity as the victim goes flying through attacked zones). But still, for the most part, mages would make items not only for themselves, but for their retainers, fighter friends, etc. 'High' magic is only reasonable...