Well, in my hack I wanted to make the sword obtainable from a chest, but I guess by default there is no such chest value that does this (As far as my experimentation went). I also noticed a lot of freezes from random items, so I thought I'd see just makes what do what. Here's what I came up with.

1602 is the ID of the Power Gloves. I've played around with those "Useless" values quite a bit, but I never got anywhere. It turns out if the first byte of the ID is less than 0x20, it's detected as weapon. If anything greater, it's something else like money or a key. One thing I haven't figured out is what controls the level of the weapon. If the weapon is 05 (Which requires a run-time memory edit to not freeze the game), which is the sword, it turns out Level 3 instead of Level 1. I know there's a separate value in the memory for this, but I can't see why it's not by default 01. I know for a fact the level doesn't depend on the second byte of the chest ID, because a Level 3 Sword has 03 at C6B2, not 02. A 00 sword does no damage.
But yea, just a small experimentation. Maybe it'll go somewhere further!
EDIT: I guess the second byte does control the level. The byte that gets written is that + 1.
~Lin