steeldragons
Steeliest of the dragons
Living Campaigns are official play. They use the RAW. "Common sense" is useless. You have to make actual RULES, or people will say "Well if my halfling wears halfling-sized magic slippers of weightlessness she should be able to wear half-orc-sized boots of fire protection over those, with room to spare." and so forth.
And the DMs who can't say no ARE a big deal. They're a very vocal part of the community, and they do have some influence. See: Bag of Rats.
Ok...I don't know what "Bag of Rats" is...but fine.
The DMs that can't say no, again, are not the fault or problem of the rules. That is the DM not being able to say no. Talk to them. Strengthen their confidence or their...I don't know what [that isn't grandma unfriendly].
"NO" is not a dirty word...in life or,especially, D&D. And if you have the "stuff" to DM a game...then you should have the "stuff" to say "No." imho.
It is about having FUN. If having fun, for you and your group, means that you never say no to your players. Then, bully. Have a great time.
As to the halfling with the half-orc boots, say magic items shrink or grow to fit their wearers (that goes for weapons too)...that's all the "rules" need to say.
Bang. Easy.
As for the "Living Games" I have no experience with that/those.
Then, I would guess, the DM says "these be the [house/living games] rules". But the core books are certainly not responsible or to blame for what happens in "Living games".
Offer the options. You don't need the game/books to say how many and where your magic items are. Your DM does.
--sd