My current idea for houseruling this (warning: they have yet to be tested) is using the intherent bonuses, giving each PC roughly one magicl item per tier that scales automatically as their inherent bonus increases. For example, they get a "Flaming Longsword", instead of a "+X Flaming Longsword". Said Flaming Longsword has bonus crit damage as if it were a +X Flaming Longsword equal to the PC's inherent bonus to attack and damage rolls. And maybe add more powers to those weapons as they level up, kinda like artifacts.
Besides from that, I plan to use a healthy helping of Divine Gifts, Heroic Boons and Master Trainings (those are the names for the alternative rewards, right?)