[quote=Lalliman]
(As a petty side note, granting gold for equipment does not alleviate imbalance if both parties get it. And besides, in your example, whoever said the wizard was the underdog? :P At early level, sure, but they’re god-tier by mid-level.)
[/quote]

If you're just going to spend the gold on a +5 weapon and armor, you are correct. But consumable items can make a big difference in how battles play out.