Low magic is always good in the long run, in terms of your setting id say things like cloaks, amulets and the like should be the only plentiul magical items, after all they are usually the type of things the local witch or wizard would make over a suit of armor or weapon (Such items like weapons and armor are often commisioned by Kings though for war or a specific task, and as such only kings or a ruined kingdoms overgrown dungeons should have them and even then only singly for the most part).
I wouldnt go higher than +2 in terms of bonuses on anything, or +3-5 with skill ranks and keep em to say 1 or 2 properties only. ie a Knight in full plate is a fearsome opponent, but a Knight also wearing a magical amulet of natural armor +2 crafted by a local witch for a 'price' is suddenly even more scary (ie a 10% increase to avoid attacks), or the cloak that lets a player turn invisible once per day becomes a boon if designed with a situation that the player can take advantage of with it and they have no access to spells. Also id do more specialised, situational items, more AC vs, Damage vs rather than the universal versions... a regular sheild when weilded against a particular type of foe gains +3 AC is a good example, the shield was made for a purpose and its magic directed towards it, its only magical in the right situation. Its powerfull, but its power is heavily restricted outside its purpose. Id also keep wand charges to around 10 max and nothing to strong, id avoid AoE spell wands also, leave those to the wizards spell book.
Also in balancing creatures id give em some form of overall damage resistance based on their natural armor, ie a thick hide would be 2/- peircing, heavy scales 3/- , rock 5/- bludgeoning, wood 3/- slashing etc ... this way the player needs to at least carry a few other types of weapons with em, a Mace or club, with a dagger.
Also id avoid giving players any magic items that increase spell slots or increases a spell casters prime stat, this way a wizard has to dump stat points into their spell casting stat to gain bonus spell slots and keeps over all spell numbers down (although bonus spells hardly contribute a huge ammount), it also makes such wizards far weaker in other areas. To me a wizard should be the cannon in waiting, with that memorised fireball spell saved only for when its really really needed, not every second fight, and the more utalitarian spells become more popular since rather than being offensive, they instead have to become more a buffer to improve their less magically endowed companions, two magic weapon spells, a keen weapon spell, and mage armor with a magic missle to lob at the strongest foe, instead of having all their 1st level slots filled out with nothing but MM at higher levels.
Dont forget players are vain, so giving them a number of different looking mundane weapons and cloaks, armor etc while gaining no real benefit over any other, they can at least think they look good. Reward a player with jet black half-plate ro replace their old greyone and most will be happy.
Im from old 1st edition D&D so for me, the fact that some of your most powerful plannar creatures required a +3 weapon to actual damage (none of this 10/- +2 crud, where with a crit you can overcome their resistance, even though it does make sense that way) and +4-5's where more or less reserved for combating the very gods themselves to me anything +1-2 in equivilant power is more or less top level stuff.
It sure makes low level spells like Magic Weapon and buffing suddenly a whole lot more desirable and required even by higher level players. It also kinda brings melee into line with casters since the casters to be truely effective have to prop up the melee with buffs, whcih means less direct offensive spells.
Hmm ive rambled