In older versions of D&D, monsters had a "treasure class" that linked them to a table from which the DM could randomly generate treasure as a reward for the encounter. In 3rd edition, this was altered slightly to be driven by the encounter level, but it was basically the same idea.
4th edition does this differently. The game assumes that it will take the party about 10 encounters to level. For each level, the DM's guide prescribes a set of 10 "treasure parcels", to be doled out at the DMs discretion, one for each encounter.
Some parcels include magic items of a pre-determined level. So the DM knows that treasure parcel x for level y should include a magic item of level z.
By following this formula, the DM can ensure that the party has had an opportunity to secure magic items at the appropriate rate. Follow the standard, and you won't make the party over-powered by giving out too much. And you won't make them weak by giving out too little.
Unlike previous versions of the game, there's no mechanism for "randomly" choosing items. The DM's Guide suggests that the DM ask the players for a wish list of items that he can provide in the treasure parcels. The idea is that you don't provide worthless items that the party will sell at market. Apparently the designers of the game felt the widespread sale of magic items was somewhat distasteful and unrealistic. Using a wish list helps you make sure that the items that you provide are wanted and useful.
I have mixed feelings about this, but in the spirit of play-testing the game I'm going to give it a try. Please feel free to submit a wishlist of magic items.
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