I think it would be a nice system to implement in the game, and you could do a huge quest chain to go with it. IDK how you would exactly do it, but you could tie it in with the school's somehow or something....Maybe for the levels you dont learn a spell, you get to do something with a peice of armor, like an enchantment. The higher the level the better enchantment. Or you could make it like a crown thing, 1k crown to put an enchantment on an item, and you could then make it more expensive for each enchantment after that. Or maybe you can make it so that you have to do a ton of farming(mob killing) to get a lot of materials to make items.
I don't really care how ya'll do it, I just think seeing as it's a game about wizards and magic, you should be able to make your own unique singniture Items, because every wizard I have read about, and quite a few non-wizards, (hero types basically) have thier on special items. Ex... Excaliber, dragonbane, brisinger, etc.