FireLance
Legend
WotC promised a smaller Christmas tree (a "Charlie Brown" Christmas tree), not that the Christmas tree would be removed. This is one of the more common misconceptions.Is it just me or wasn't 4e supposed to get RID of the Christmas Tree Effect? All this talk about Wish Lists sure makes it sound like Christmas to me.
How is this any better, or even different?
A DM who doesn't want to give out a lot of magic items can simply give each PC three appropriately-levelled items (one weapon/implement, one suit of armor, and one neck slot item) every five levels, and can still expect that the PCs will be able to handle level-appropriate challenges. The PCs will still be less powerful than PCs with "standard" levels of wealth, but not excessively so. Alternatively, the DM could just give out inherent bonuses (described in DMG2) and no items at all.
Wish lists (another commonly misunderstood tool) are simply a formal way for the players to tell the DM what magic items they want. The choice of which magic items to give out, and whether or not to give out magic items in the first place, still rests with the DM.