Upper_Krust said:
A 200th-level Fighter WITH NO MAGIC ITEMS could defeat a Prismatic Great Wyrm IN ONE HIT.
With all do respect, with that statement, I now believe you have lost your grip on reality.
The ONLY way ANY Level 200 character with NO magic items could EVER kill a Great Wyrm Prismatic Dragon in a SINGLE hit would be to use the Intant Kill variant rule, which requires rolling two 20s in a row and then hitting on a third roll. A Level 200 Fighter would have only a 0.2375% chance of pulling it off, so your statement is completely invalidated.
The system works on averages. Using your system that limits the power of magical items by an ABSOLUTE, Great Wyrm Prismatic Dragons are pretty much invincible to *most* PCs because bypassing the damage reduction would be nigh impossible, although Sacred Fists and Monks could do it at some point. My point is, an average party would never be able to get past the damage reduction.
Yet you say that the Great Wyrm Prismatic Dragon would go down in a single hit? What are you smoking?
As for limiting items, I have already proposed that better versions of Efficient Item Creation be made for higher levels. I think that can take care of the costs of creating items.
Look, plain and simple, the ONLY way the game could balance if you take away all items that cost more than a certain amount is to create an insane number of feats that emulate what those magical items could do. I see no such things being created, however, which makes me wonder how much thought you have put into this . . .