I personally prefer a more Fallout-3-style inventory system where you work with lists of descriptions, rather than icons.
I think that could work particularly well if, instead of having fixed categories (weapons, clothing/armor, ammo, consumables, and the dreaded and always-overflowing "misc."), items instead had tags. Some of these would be preset, such as the categories above, but you would also be able to create your own tags, such as "favourite-potion" or "always-sell" and apply those to the potions you most frequently use or types of items you never use (e.g., arrows for a bow you can't use), allowing you to find them more easily when the time comes to use or sell the items.
This could be fairly easily implemented in a way that people not looking for this level of sophistication in inventory management can completely ignore the ability to generate your own tags and just use the default ones, ending up with a reasonable interface anyway.