I do think this would be cool. And would love to see it promoted and announced as being released in around 2 years so the game has some time to breath and creators/players have time to learn what is and isn’t working.A book along the lines of 3e's Unearthed Arcana, with lots of variant rules options and ways to customize the game for different playstyles.
My suggestion was to only put the most iconic spells in the PHB and the most iconic magic items in the DMG.Tbh, a lot of the suggestions I've seen look best within the DMG, so my suggestion is to move the the magic items into their own book and use all that space within the DMG for optional rules, campaign and adventure building.