Diablo 3 is proof we don't need trading. When players can trade, they spend majority of the time trading instead of playing the game.
The entire point of the game is to kill enemies to get better gear to kill more enemies. If you trade your way to top gear, when are you going to kill enemies, in which case why do you need better gear?
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Diablo 3 is proof we don't need auction houses. The trading aspects are fine.