Without reading everything.
Here is my ideology on items:
Everything, bar a few very special (artifacts, epics, and special quest items) should be tradable.
Here is how I limit the use of said items:
Level REC and level REQ, as well as zone-level restrictions (temp deleveling when going to prime material plane zones, etc)
all of my items have a level REQ where you can't even weild it unless you are of a certain level, and a level REC for the max level of that tiier
there are some fancier things i've done in some zones and will be doing in more zones... like special encounters that happen for powerful players trying to slum it...
regarding economy.. i have some very special incentives to sell your loot toe vendors
i have a massive (20 line sql query) that does some magic to the item db and prices everything based on special rules - also there are alot of things buyable if you have loads of pp. granted you can probably exploit the pp a little if you are powerful enough.. but that is intended... as to max out your toon you will need 100s of thousands of AA or 10s or even 100s of millions of pp (read: my god-worshipper system is expensive for the god side of things but free for worshippers))
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Demon Overlord of Alakamin
skype @ davoodinator
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