I don't know how much of a low magic world you want, but I got one for you. I'm attempting to pull off a 'moderately low' magic world.
Magical items follow three rules. 1) A person must put xp into something, to wake up its' power and attune it to them*; they don't fully work when you pick them up. 2) The one who creates an item knows all its' powers. 3) Evil items are easier to make, but they come with a price; usually turning the host evil.
*You must also do deeds and quests for your magical item. For instance, you must learn its' name to make it a +1. Or, you must quench the blade with some fire-bound creature to make it a flaming burst weapon, or stop a large conflict nonviolently to make it Merciful, or gain more knowledge about the weapon.
There is also the Spontanious Magical Items; those created via unintended actions. Imagine a weapon passed from an executioner to an assassin to a street thug to a serial killer, through chance. This weapon would be exposed to a lot of pain and suffering, and slowly it would become 'magical' through the intense emtoin that it has brought. In the BoVD places can be 'polluted' by evil acts, and so can items, in my opinion.
Magic is not dead, no. Mages and other spellcasters are still around. However, all spellcasters must have a theme. For instance, the Cabal of the Magi draw all of their power from elemental forces, which show in their spellcasting (Note, this is all flavor text).
I've also considered changing the Wizard. Interested?
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If you'd like to know about the Xp into magical items thing, I got rules for this out of Dragon. I could send them to you, if you like.
Hope that helps.