The prevalence of magic items (and spellcasting ability in general) makes magic feel less magical. Part of what is starting to bother me about d20 D&D is that it feels more like a paper simulation of a computer RPG. I've considered running the game so that all casters effectively have access to all item creation feats once they reach the appropriate level, but the components for magical items would be rare and difficult to obtain. I pondered it for a Greek game in which there are no arcane spellcasters--only divine casters with divine bloodlines who get access to a single domain. Items are gift from the gods, too; so no magic shops of any description. So far, I've not been able to run that game.