I'm going to give this a try in my next campaign.  I'm thinking of changing the parcels slightly.  I have a party of six.  I want to go for "more items" rather than "more powerful items", so I was going to use the 50% sell price (which I was already doing, and didn't notice any real balance issues), but remove the level+4 standard item, and the level+5 item that eamon suggests and replace them with an extra level+3, level+2, level+1, and level+0 item.  Would that work out alright mathematically?  Could I maybe throw in an extra level+0 or two into the mix?