Right! I remember that, now, yeah.
However, to be fair, that was WAY early in the development cycle, well before the game was being finalized. I'm pretty sure that had already decided against it well before the game was being publicly shown off.
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It's worth noting that they've floated Trading several times since, before saying they won't do it. It's a mum point anyway, since the lack of a trade system is frankly the least of Destiny's problems.
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So, you'd be in favor of a trading system, then? Personally, I think trading would be the nail in the coffin for this game, not gonna lie. As it is, our gear has barely any meaning, yet is still a massive grind to obtain and level up; if you put in trading, then it's all a complete joke.
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I would be, but with a caveat: Only allow exotics to be traded. It's simple, straightforward, and makes sense. It gives players a reason to go use the kiosks and hunt for new parts of their collection. That would do a lot for helping people expand their horizons, since they wouldn't need to farm endlessly or wait for the stars to align when Xur's selling something. That would also keep raid gear out of the pool.