Unless of course they adjust drop rates to make sure their "market" doesn't get flooded, and as a result their cut of the profits which stem from a percentage of every sale.
Then the people getting hurt are going to be the poor saps who are trying to play the game ... I don't know like some sort of "real" RPG, in that there's no magical auction place to buy stuff from mysterious interdimensional travelers (other players). Hell I believe even somewhere in this thread this was a quip about single players, and how they shouldn't use the AH at all...
Keep digging your hole thinking you can get out of it Blizzard.
Well you can beat the game right now with the gear that is already on the AH so if they want to adjust the market so that blizzard is only selling the most bad ass items, then it will be market correction to decide whether or no to buy the product/service.