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Can Improved Familiars like Lyrakien Azata wear equipment and wield wands/weapons? I read the FAQ but it says at the top "It is intended that animal companions or familiars can not activate magic items" then below it says "The brownie, faerie dragon, imp, lyrakien azata, mephit, quasit, sprite familiars, granted by the Improved Familiar feat, use the Biped (hands) section of the chart. The carbuncle and voidworm protean, familiars granted by the Improved Familiar feat, uses the Serpentine section of the chart. If you do not own a copy of the Animal Archive, your animal companion may only use barding and neck-slot items."
I own the Animal Archive and was interested in getting the Lyrakien Azata familiar, so could I put a helm on her and give her a wand? If so the Improved Familiar feat is worth it, if not then not so much.

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Improved Familiar is worth it even without gear just for the wand use and even some SLAs.
But yes, you may purchase gear for your familiar, AC, companion. Just remember to adjust cost for size, if needed.
Somewhere in Absalom is a weapon-smith shaking his head at the sudden demand of tiny lucern hammers and tiny long spears.
(for those familiars with hands)