Jerinx container nerf idea plus Dulriks hoarding definition equals a bright new future. The latter takes care of the really heinous weapon/armor stuff, the former naturally takes care of consumables.
Once hoarders were identified, they could either be punished or dehoarded by the system using the systems suggested in this thread or any others, such as a combination of Finney's presence requirement and the formula I offered for calculating it. While I disagree with the PVP priorities in the posts of Jerinx and Finney, it's hard to deny the practical reality of their observations.
A hard item cap goes against every ideal espoused by the system. One thing about rules is that you sort of want to give people opportunities to identify themselves as disappointments, Inera, so that you can deal with them.
However, we could also define hoarding in a scaling matter. To be a hoarder, you would hold a significantly larger amount of certain kinds of equipment than other players. That can be calculated easily each month. See
this formula for an example. Roughly 2/3 of characters will have scores between -1 and 1. 95% of characters will have scores between -2 and +2. That number can be used to flag characters for being problems.