What Kragel and I are working on are items that would be commonly available for people, but not 'common' items (at least that's the part I'm working on). The items are raw materials, like leather, wood, metals, dyes and such that will serve as the materials for requesting items, as well as allowing some commodity to be traded on the market, thus allowing a more fluid market. Unlike now where every item is being semi-hoarded, these raw materials is less valuable than unique items, thus people would be more willing to trade them away.
As for items that are common, everyday items for RP purposes, I don't believe they are needed much. The item system serves as another side of inner magic, where possession of a certain item implies ability to use it (and be officially acknowledged of being able of said ability that comes from wielding an item), or to enhance the richness of someone's role. Items to enrich RP, however, I believe was intended for people to choose carefully what item best reflects and complements their role (for example, as a blacksmith kragel has a hammer, as an archivist Ren/Pamps has a quill). However, items like muffins or a cup of tea doesn't need to exist in the game, as people can still RP without the item's physical existence just fine. The impact of the item as a common everyday object is not that big to require a physical existence IMHO. Of course, this would be a different case if someone's role was the Lord of Muffins, where a muffin bag would be a great item to complement his role.
Anyways, that's my opinion. I agree that we could use more items commonly available to people, but I am hoping that 'common' here doesn't mean some rather "insignificant" (forgive the term) items.