Quote from ScaledWurm
Well the game is balanced around the AH. If that wasn't the case I'm sure the loot drops would probably be better but only a small percentage higher. Just remember if you try to play the game without the AH you are gimping yourself. Its like saying, "Hey I know the game is balanced around using 6 skills but I think I am only going to use 4." It becomes something you are doing for yourself to add a challenge but you can't complain if you don't do well when the other two skills were already there and available to you.
This isn't in dispute and as I have repeated, three times now, I don't think you can argue that removing utterly-useless garbage from the equation changed things significantly. Most items would still be well below the minimum value to be worth selling. I use the AH myself, but that really doesn't form my opinion on the matter.