KarinsDad said:
Even at 50%, the guidelines you quote can easily give the PCs a lot more wealth than they should ever get. And except for a few bribes to NPCs or spells cast by NPCs, most PC expenses are fairly trivial compared to the wealth that they acquire.
I often have trouble with this in games I run. I use a lot of NPC opponents.
Part of the problem here, and I think this is mentioned in the DMG somewhere, is the "back to the dungeon" emphasis. The assumption is that many encounters will be "big game" style, with big dumb beasts that provide a threat but not much treasure. NPC equipment would provide the good stuff in such a scenario.
But if you run five levels (60+) encounters in a Tuan-Ti temple, or fighting a thieves guild, then your characters will have much more treasure.
You can not count potions and etc. as treasure. It will get used (unless, of course, your players are hoarders). You can discount low level treasure. I mean, how many +1 weapons can a PC use? And how many can the local temple afford to buy? And how many to you want to lug around?
But I prefer to use lots of one shot items: potions, single magic arrows, poisons, sub-charged wands. It tends to work for me. Plus, PCs don't always stop to loot. Don't always have times, and sometimes they miss stuff, or forget.
The problem with under-equipping NPCs is that they often seem under optimized against PCs anyways, so I like to give them little boosts to make them surprising. That mid level mage? Has one dose of dust of disappearance! Woo Hoo.
I also find it easier (for time and story reasons) to equip members of an organization similarly. My rangers all have potions of barkskin, for instance, because they have a evil treant druid making them for them.