The magic items in Might & Magic I are more interesting than they seem at first glance. For example, you can have a Staff +1 or a Staff +2. Easy comparison, right? Staff +2 is better as it has better "to hit" and damage. But the Staff +1 gives a +1 to Intellect, the Staff +2 gives a +2 to Luck. For a wizard, that +1 to Intellect means more magical power, while a +2 to Luck is just a nice bonus to saving throws. You might want one or the other, but it's not as clear cut as "+2 beats +1.
I am always a fan of items with additional effects or tradeoffs.
I'm also a fan of stealing ideas from video games, such as item sets (see DFT3, p. 5), although the idea of items bits with power that have more as a whole goes at least back to the Rod of Seven Parts in the AD&D DUNGEONMASTERS GUIDE.
One of the PCs in my game has a "Belt of Power" - I think he's written it down as a "Belt of Might." It's an item easy enough to make with GURPS Magic, but the reason for it is that I loved finding those in Might & Magic I back in the day.
As I've been playing the game, I found a few more items I thought would make good Dungeon Fantasy magic items.
Elemental shields come in several varieties - fire, electricity, cold, or acid. They are medium shields with Deflect +2, but when held ready provide an additional 10 DR against attacks inflicting using the same type as the shield. The shield itself will take no damage from that damage type.
A crystal vial full of strongly-smelling vapors, which, when properly mixed and released, are especially effective at waking people up. When held and opened (which takes one second), it release the vapors. Allows all within a 2-yard radius of the user a roll at HT+5 to wake up - at -3 if unconcious from injury, -6 if drugged. Has no effect on magical effects that are not stictly "sleeping," such as Suspended Animation or Daze. The vial is not a grenade, however, and smashing it is not terribly effective - if it does break, it usually doesn't mix very efficiently and it will work at reduced effect. The HT roll will be at HT-2, not HT+5. Has no effect on victims with Doesn't Breathe or No Sense of Smell/Taste.
0.5 lbs, $100.
Staff of Curing Poison
Casts Instant Neutralize Poison with no chance of failure on a subject when the bearer touches them and wills it so. Requires Power Investiture or Magery, but also requires the bearer to be basically good (GM's call on what counts - usually one or more of Honesty, Sense of Duty (Good Entities), or Intolerance ("Evil" religions) and no negative traits.) Once per subject per day. The bearer is also immune to poison while holding the staff ready. If used in combat, treat it as a normal quarterstaff with Puissance +2.
Those three items are a good start, I think, on the fun that Might & Magic I has to offer to a DF game. I didn't bother with costs, but it's possible to price these out if you intend to allow them to be on the market or sold.