I have played in high magic games, and I have played in low magic games. I think the best situation for both the GM and the Player is to have a campaign that is somewhere in the middle. Players need to have some items of varying power to get them through those early levels and really, keep their interest in the character.
I prefer to run campaigns with a lot of NPC interaction. As a result, my NPCs are more often than not the antagonists in my adventure and will come to blows with the party. A high magic party will need to go up against an equally powerful NPC group. When and if the party defeats the bad guys, they are now the owners of the new magic items.
A balance somewhere in the middle is where I like to be.
Regarding T&T, it seems the original design of the game and its magic items revolve around putting existing spell effects into the item. Just a I have started experimenting with creating some monsters for my eventual T&T campaign, I will also be heavily playing around with magic items. In the 7.5 rulebook, there are the tables for the Random Treasure Generator, but I also have been busy reading spells and trying to figure out which make sense for converting into some form of magic item.
Enchantments on the 'Magic for Weapons' (pg 72) table include many effects that double combat adds or different attributes. There are also effects that grant invisibility, increases armor, and doubles weapon damage as well. All really just basic stuff...which again I believe is the idea. The system is meant for you to do with what you like without the restrictions you may experience with other ones. I think in this case, it works for Magic Items because that has always been an area that comes naturally - creating items that make sense for a particular idea you have regarding an NPC or a situation.