delericho
Legend
I think that most monetary treasure should be physical objects of value - jewellery, art, etc.
Yep, I'd agree with this.
Also, I'm inclined to think that most 'found' magic items should be (a) something more powerful than the party could buy with their current wealth, but also (b) explicitly not something they would choose for themselves if they just had the money to spend.
The first of these conditions should, hopefully, get the "cool!" response, since it's always good to get nice items. The second is key in that it negates the "wish list" thinking. Additionally, coupled with the 20% (or 50%) sale price it gives rise to an interesting choice - keep the 'powerful' item, or trade it in for a less powerful but 'tailored' item?
Incidentally, it's probably important to note that when I said "explicitly not something they would choose for themselves", I didn't mean "give them a useless item"! If the party's Fighter is an Axe specialist, giving him a magical longsword instead is not really a good idea. But it's not a binary choice between "the perfect item" and "useless item" - give them the magical axe... but go for some of the more unusual enhancements and qualities, rather than the holy, flaming and/or bane vs evil outsiders that they'd probably choose for themselves.