1.) I like your villain idea. It could be like Indiana Jones and the Last Crusade. Where the book doesn't give exact locations, just clues. And it was written by someone who wants the items powers for himself.

2.) Maybe when the gods fell they themselves became champions? Or, they're still gods, but can't ascend back without their items. I don't have a whole lot of ideas for this.

3.) Maybe a space western era. Think Tri-Gun, or just modern times (not futuristic).