I think perhaps part of the original point is that people assume you must have X amount of magical gear in order to be effective. This may have been true with earlier editions, but not as much as you might think with 3.5. Many of the DR after all, are now ignored not by +X weapons, but unique materials (Silver, cold iron, etc). And in reality, from a real world standpoint it is easier to assume a blacksmith would make and sell cold iron weapons than that a wizard would spend his hard earned XP to make enchanted weapons for the typical adventurer.
Many magical items can be easily replaced by mundane ones with only a bit of imagination. Most magical potions can simply be converted to "homeopathic remedies." Who needs a cure poison potion when you have castor oil? Protection from electricity needed? How about some rubber-soled boots to ground you? It's entirely possible for a DM, if he or she really wanted to, to find mundane replacements for magical gear and simply adjust the entire game accordingly.
Of course, whether you should is dependent on the feel of the game. I don't think I could effectively run a FR game with magic-lite rules. It destroys the point of the setting. But I could run a generic medieval fantasy style game with little or no magical items just fine.