Great move. I remember the first time I stopped by the auction house and bought some powerful gems for my level 20 character. I'd been collecting crappy gems planning to upgrade them, but then for a pittance of gold I had suddenly (almost accidentally) twinked my character with gems with huge stat bonuses and no level requirements. I tried to swear off the auction house after that, but the psychological damage was done, and I never played Diablo 3 after the first time I beat normal difficulty. (To be fair, I might just have been in a different stage of my life than when I was a Diablo 2 addict in high school.)

I'm sure this will become a seminal case study for online game design in the future.