I am very wary of items such as jewelry crafting...
MD is supposed to be different then any other RPC game out there, and to me that is very similar to systems already present in many other games.
As much as I love inventories, we need to be careful of creating items that can be accessible to everyone. I think items should be given very selectively to very few people, and if there is to be a smelter for example, there should be one true smelter.
I would like inventories to strengthen roleplaying, not become another access of the game separate from it. If you would like to pick a fruit... just *pick a fruit*, I truly do not see a large need for objects for everything in game. Possibly eventually, but right now items should be personal.
Item uses I would like to suggest:
A crown, symbolic for the leader of an alliance. It can be taken only by someone in the same alliance, with greater loyalty, and by a victory in combat.
A key, able to be given to anybody, that opens the door to a place. An example of this would be a key to Sage's Keep.
I would suggest that certain items be able to be taken, and not just given. Items that work similarly to heads would make for some very interesting situations, not to mention an increase in combat. For example, a sword that increases stats. However, of course, there needs to be restrictions. For example, the person needs not just a victory, but a 100% to 0 % win, or some other similar defeat.
There could be items that act as books, and whose description contain links to a body of text, or you could create another action (read item). For example, a book of secrets about Loreroot, or a book about the Sun.
A few ideas, I'm sure I'll come up with more.
Awi