It is a vicious cycle really. Mystic bling has a value because you want PC's to be able to purchase or make the thing, and you want them to do that so they can have a magical item suitable to their suite of abilities.
The only way out of not having magical items worth more than a king would spend is to have magical items be priceless, as was assumed in 1e/2e. Unlike 1e and 2e though, you shouldn't use magical items to determine whether or not you can hit a monster, to balance the powers of different classes (in 1e - 3e the warrior classes were more dependent on their magical items than their arcane counterparts).
In other words, arcane items will have to be a freebie that adds to a character's power, but doesn't dominate the character. Ideally, the number of magical items would simply change play style on a scale from the more gritty and drawn out slow mundane combats up to the 2-3 round blazing, booming, blood-fests of a high magic party. In other words, playable and survivable in both modes, with the same set of monsters from the monster manual, but with a different feel. Perhaps high magic games give out less XP to reflect that you are able to kill more monsters and easily loot more dungeons.
I would think that this would require building a D&D clone from the ground up. I've played games from 1e - 3e with DM's who refused to give out magic items as much as they should have (ie. the amount that was given out in official modules), and it SUCKED. I'm absolutely positive that the same holds true for 4e as well.