I've always thought it'd be easier than it must seem. The sidequest where Yuffie takes all your materia isn't that tough. I can imagine stretching that out to the length of the game. I hardly ever use any of the magic I have equipped anyway. The only real adjustment I'd be making is using items instead of Cure.

I once gave Initial Equipment a try, but I got bored/annoyed very quickly (like.. before Junon). I don't think challenges are my thing.