i never understood the need for "muslins"... i just used an old hand towel...
a newborn really doesn't need very much.
-diapers
-a few sets of clothes
-a place to sleep
if you are breastfeeding, that's about it. if you are bottle feeding... then you need the bottles and assorted paraphenalia. (sp?)
everything else is a luxury. i remember bathing my cousins in the kitchen sink... which is exactly what my mum did for my brother and i when we were kids.
you can make it without a pram, a baby sling, a breastfeeding pillow.
what it really comes down to is this:
(1) how much space do you have?
(2) how much money do you have?
(3) how much luxury do you want?
i'm not judging someone who wants to spend more on their pram than i did on purchasing my car. but for us, we tried to keep it as basic as possible... but even then, it gets out of hand very quickly!

it's just too much fun, especially when it's your first!