Any asshole can make a magic item if they have basic knowledge,

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Any asshole can make a magic item if they have basic knowledge, and are willing to devote a lot of time and resources to the project. The world is flooded not just with magic items, but with magic tchotchkes: when you're getting an engagement ring for that cute girl, why not get it in a case that creates miniature fireworks every time it's opened? A day laborer spends several days taking apart a chair and putting it back together just so it'll massage his shoulders when he returns home from work. A housekeeper carves and gilds a feather duster into a Rod of Glass Cleaning because she said she doesn't do windows, and by the gods, she's willing to do anything to avoid that particular pain.

How might saturating a setting with junk magic effect things for players with adventuring PCs? Could the GM entice a player to play one of those "break a magic item to gain a bonus" characters? What if having pockets full of magical trash screwed with spells like Detect Magic, and even Detect Invisibility?

For a mechanical example, in terms of 3.x, anyone with a single rank in a relevant Knowledge skill gets every item creation feat as a bonus feat, and can use those feats even if they're level one.