Eva of Sirrion said:
(Psi)SeveredHead: Thank you for cutting and drying the point I was alluding to earlier. So I guess the question really comes down to is, is there not some happy medium between standard D&D (where characters need to be decked out from head to toe to meet challenges commensurate with their level) and a game like IH (where characters have virtually no aid aside from the class abilities). We have two extreme cases, is there not a middle point within already-published d20 works? Again I think it's not so much a setting problem as the OP seems to think, but a rules problem.
I think Midnight 1.0 said you were supposed to get 1/4 of your expected treasure. I've never played it, only (obssessively) read over the book. It didn't seem all that balanced, actually (look at me, Mr. Crappy AC!).
You were often given "heirloom items" that increased in power with you in lieu of treasure. I never did get the hang of how you were supposed to assign these, but that's probably my fault more than the fault of the setting. While you might have a magical sword, it might also cast
cure light wounds thrice per day "on a real hero".
Characters got "Heroic Paths" which basically gave magic to non-magical characters
As for spellcasting, there were base spellcasting classes that even used DnD spells. Again, I'm not sure it's balanced (more on that in a moment). The spellcasting classes were nerfed compared to DnD but got lorebook abilities and other things to give them a personality instead of just being spellcasting machines (whoops, my bias slipped

). There was an NPC-only legate class which was similar to a full-fledged cleric.
In an attempt to replicate LotR's flavor (Gandalf has powerful magic, but doesn't like to use it because it tells the enemy where he is), there are pets that "work" for the legate that can sense magic and magic items. Not having played it, I can't say for sure, but I don't think it would work. A spellcaster's abilities are much more useful than his "lorebook" abilities (something you find in IH, BTW) so the spellcaster will cast spells anyway. Oh no, a CR 2 creature might come after me! Okay, it'll probably bring the legate and part of his army, and then the party is in real trouble ... or it's a hard challenge, like most hard encounters. By the time the party has to turn in, the mage is going to be low on spells anyway, so it's not like a drained mage is going to end up "summoning" legates to him ... I think.
I do not know how it dealt with monsters. The setting had a few monsters, which suggests to me that you were supposed to use DnD monsters. I suspect that would result in "Mr. Crappy AC" getting shredded by wolves.
* Potential full spellcasting problem: I haven't played Midnight, but I have played two sessions of Wheel of Time. You can eventually cast 9th-level spells, just like in DnD. You're not supposed to have magic items, but you can cast spells up to 9th-level. I was a wilder - think sorcerer. (As a male wilder, my PC ran the risk of insanity... that's part of the setting, and nothing to do with balance.)
I knew there was a problem when my 2nd-level wilder could cast 2nd-level spells. There were some broken 2nd-level spells too (solid air anyone - an inexperienced player immediately broke that spell), but then again how often do you see 100% perfectly balanced pieces of work?
The save DCs of spells were too high (base saves were roughly the same as in DnD, and of course you didn't get Cloaks of Resistance), and the effects too powerful, when you consider how weak the non-spellcasting classes were. (They got a class bonus to AC, but unless they were an Armsman they couldn't benefit from it and armor at the same time. One of the players was an Aiel, and he complained that he was supposed to carry a small shield, but could get no benefit from it.)
The setting has its own monsters.
D20 Star Wars is a setting where "spellcasters" (the Jedi) co-exist with non-spellcasters. There are balance problems. The "spellcasting" is actually kind of weak - in general - because you give up vp (basically hp) to use them. Instead, Jedi usually use their overpowered lightsabers (because a 5d8 + Strength melee weapon is balanced with a 3d6 damage ranged weapon, right?). There are some very powerful Jedi abilities that almost everyone takes. I don't think they managed to balance it well. No magic items, you do get a class bonus to Defense but you can't use it and armor (as DR) at the same time.
The setting has its own monsters.
I think the only thing missing is a really popular low magic ruleset (there's many, but none are particularly popular on their own), complete with its own bestiary. Iron Heroes has a bestiary, BTW, although I've never seen it and can't comment on it.