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I think one reason folks go low magic is to limit magic items. I think one of the reasons for THAT is simply that magic items never break.
People in this thread have equated magic to technology in the real. Well, I'd disagree because my computer can get a virus, my car can break down from wear and even my push-point pen can get jammed.
When was the last time a wondrous item in PF wore out?
Now you can have charged items, sure. Consumables are fine. But when you have, say a Handy Haversack, unless someone targets you with a Sunder attempt or something the device NEVER breaks. Ever.
Consider that for a second. What if you could make a blender that would NEVER break unless you physically destroyed it on purpose. The motor would never weaken; the blades would remain sharp for literal centuries; the lid would fit as snugly on the millionth blend as on the first.
That's ridiculous, but yet that's magic items in Pathfinder. So for some folks this simple truth makes limiting magic items imperative. If you can always consistently count on your armor, bracers, belt, Ioun Stone or whatever to never falter unless specifically targeted by an enemy that means that your players will ALWAYS have that level of power at their disposal.
Frankly for my games I play the system as is. I don't really care too much about the magic level, demographics, realistic economies and such. I'm playing a game where a mortal male was drunk one night, in the right place at the right time, and blacked out; suddenly he is an immortal, eternal power of the universe with millions of worshippers and near-limitless magic. Yeah, there's no comparison to my reality there at all.