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Currently I am running a semi-low magic campaign. My solution for the power imbalance problem is to simply only allow magic items that fit my vision so caster and combat classes still even out but it does not appear that it is a high magic campaign like something run in FR or Greyhawk. Think Dragonlance without all the drama.
I pretty much just flat out ban magic items that violate the flavor of the game. For instance, a +2 sword is ok since it looks and functions pretty much like a regular sword for all intents and purposes, even a +1 keen sword is kosher since it is not overtly magical it is just a well made sword that is particularly sharp. A +1 flaming sword, however, violates the rules. Casters can still have wands and rods that duplicate abilities that they already have but an immovable rod would be kind of far fetched. Even something like a +1 Cloak of resistance isn't all that overtly magical. To preserve the flavor of the game you can just simply ignore the fact that it is magical and apply the bonuses anyway to maintain the balance.
So, in short, my suggestion is to just pick and choose the items that mesh with your vision and restrict the players to those items. Same for spells, abilities, etc.