I've been AWOL for a bit, but have been a VERY long time player of Narf (like CD and a few others that sounded off in this thread, as well), and I think everyone has good bit of input here.
I think overall, Rei said pretty much everything I could have, because this is how I see my main PC as well… she's almost 12th level, and I see her more as a teacher to the newer PCs. She's a very giving person, and will help others to the best of her abilities.
I've seen some amazing gear given out from DM events in the past, heck, I've gotten some of it as well. As far as usefulness of the items (call it powercreep, whatever you will), of all the items I've had (and given to apprentices, etc) I think the one piece that sticks out in mind most was a piece that WAS gifted to me back when I was a weeee baby PC. It was a set of armor that was in no way overpowered for the level I was at, but that's neither here nor there.
The point of my wall of text was that SINCE we Narfers pride ourselves on RP and lifelike characters, that piece of code.. those 1's and 0's actually had sentimental value to me. I used that armor forever, not because it was super strong, or because it looked awesome, but because it affected how I played that character. There was a sense of pride in the fact that an Elder of the Circle at the time saw enough promise in my character to gift her with what was a treasure to them as well.
And from what Vander was saying, as a DM on (perma?) Hiatus, I've made that really nifty piece of gear for a player in the toolset, imported it, and seen it passed over because the PC had gotten something "better" a day before. I do think checking with the DM staff is indeed the right way to go in this respect. The rules aren't really there to spoil anyone's fun.
While I am on the topic of DM'ing... I was a member of the DM team when Telli's will was being handled.... and while I liked the idea in theory, it was a massive headache for the staff. If we could find a way to do wills without having to track down PCs, wait for players to log in, etc... then I think the idea is great. Without this in place though, it makes for a Charlie Foxtrot. (those who don't know what that means, /google. )
As for people wanting that "special" piece of gear... there is always the option to talk with the DM staff and see about a quest for said item. The Crafting system (Both the mundane and enchanting system) were put into place to give PCs a chance to just "buy it now". I'm hopefully not stomping any toes here (crafters, be gentle ), but in my opinion, questing for an item is the better way to do it, because then, when its all said and done, and the dust clears, you also have a story to relate to that item.
And after all, the Story is what we're really playing for, isn't it?
