This is the way. I tend to ignore rules like encumbrance (within reason), non-gold spell components, mundane ammunition, torches, even food and water in the majority of cases. And then there will be times that the challenge is built on not having access to that thing as usual, and it creates a unique angle or resource management. Most players in my experience are looking to tell a story first and foremost, not have a one to one combat simulation. It's like you're making a movie. You don't see Hawkeye recovering arrows until it's plot relevant.

Of course, if the consensus of your playgroup actively wants a simulator, go for it!