There was a quote a little while back with Lead Designer Bruce Nesmith, that there is "Thousands of different weapons and armor", that estimate surely is figuring for pre-built magical (Enchanted) items, but still, that's pretty insane.

I'm not really talking about enchanted armor. Of coarse there will be thousands of variations when you factor in enchantments, considering there are hundreds of different types for armors and weapons alone.

The number will be increased significantly when you factor in magic items, yes.