After a certain level, it absolutely does.
Without magical items you have:
- Non-scaling AC
- One to four decent skill checks (possibly skills that aren't useful)
- Either mediocre damage or high damage with little chance of hitting
- Few tactical options
- Fewer (or even no) area attacks
- Natural hp (which tends to be lower than you'd think)
- Limited healing
Apart from the last, which I don't really understand, I don't see how this contradicts me.
Take a look at a typical Combat Rogue level 20 build. Strip away all the magical items. How effective is the character that's left?
Most of them fall down to a CR 12 or 14, based upon low AC, low HP and medium attack. Their advantages are saves, evasion, and high damage on the rare chances they get to sneak attack (remember, no rings of blinking, no allies assumed).
And how exactly does this contradict me?
Yes their effective level will be lower, but they're still powerful. Sure, a group witout magic fails against one with, but I'd suggest that the test would be if all parties were in an Anti Magic Field.
To the OP: Your party are now slaves of legend, and it doesn't matter that half of them died. Five guys were thrown, almost naked, against a pride of 12 lions and none of them went out like chumps. Heck, three of them lived!
That's a feat worthy of poems and songs.
QFT!